Consultants Global Asset Solutions declared 2025 a banner year for hotel investors in Europe, with trading volumes boosted by strong underlying trading performance.
Their annual hotel transactions report notes resilient travel demand, steady macroeconomic conditions and the sort of environment that provides longer term investors with confidence. However, with 2026 unfolding as it has already, with conflict in the Middle East hitting broader business confidence, there is a danger that the previous year’s momentum may be lost.
Strong Deal Volume
The consultants measured investment volume across the European hotel space at EUR14.6 billion, across 267 transactions; counting only deals above a minimum threshold of EUR17.5 million. This divided down to an average transaction value of EUR54.9 million, with hotels trading at an average of EUR325,000 per room. The upscale segment was busiest, with 132 transactions, followed by midscale and economy with 101 deals completed.
The top five largest deals of 2025 between them added up to more than EUR1.73 billion, with the list headed by the EUR432 million sale of the Mare Nostrum Resort on the Spanish island of Tenerife. Sold by Brookfield, the resort with three high quality hotels was picked up by Spanish group Spring Hotels, and is the largest ever resort deal struck in the Spanish market.
Second in line was the sale of the Four Seasons Astir Palace in Greece, at EUR413 million, bought by Greek shipowner George Prokopiou. He initially purchased a one third stake in the property in 2024, before deciding to acquire the balance from AGC Equity Partners, the National Bank, and the Greek government during 2025.
The continent’s third largest deal of the year was in London, where Singapore investor CDL bought the Holiday Inn Kensington High Street for GBP280 million. And in Paris, the Pullman Montparnasse also sold, for a reported EUR311 million.
Global Asset Solutions report a strong start to 2026, with several notable deals already completed. These include the 430 room Pullman Paris Tour Eiffel, reported to be under offer at EUR447.6 million. In London, RIU Hotels & Resorts has completed acquisition of The Westminster, a 464 room hotel previously operating as part of Hilton’s Curio Collection.
Also in London, Criterion Capital acquired the totality of the St Giles London hotel, adding to its already substantial holdings in the UK capital. The group is busy rolling out its Zedwell compact hotel format in London and other major UK cities.
The Big Four Dominate
France, the UK, Spain and Germany are the dominant markets of the continent, between them responsible for around two thirds of total deal volume. “Overall, France rewarded quality, location, and brand strength with resilient, upper-tier-driven returns,” commented the report’s authors.
In the UK, upscale properties were the best performers, as the segment attracted a broad base of buyers. In contrast, midscale and economy hotels found trading tougher. As an overall market, Spain continues to lead the continent’s momentum on tourism, with minimal demand risk. The consultants warn investors to keep an eye on pipeline projects in markets that could become saturated with product.
