September 2024
EUROPEAN HOTEL MARKETBEAT H1 2024
European Hotel Deal Volumes Surge To Five-Year High.
European hotel transactions reached a five-year high in the first half of 2024, according to our latest data. Transactions in the first half of the year grew to over €11.6 billion, the highest six-month volume since 2019.
In the second quarter, European hotel transaction volumes hit €5.8 billion, nearly double the level reached at the same time last year (€3.0 billion in Q2 2023). Volumes were boosted by several landmark hotel transactions, including the sales of the Pullman Paris Tour Eiffel, the Hilton Paris Opera, Six Senses London, the Shelbourne Hotel Dublin, and the Park Hyatt Zürich. Overall, luxury hotels represented nearly half of H1 2024 volumes.
The UK, Spain and France were the most active markets, accounting for €7.8 billion of transactions – over two thirds of the European total, and 62% more than H1 2023. London registered the highest volume of transactions by city, with Paris, Dublin, Barcelona and Rome completing the top five. Looking ahead, volumes are projected to exceed €20 billion in 2024, driven by increasing debt liquidity and strong hotel performance.
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EUROPEAN HOTEL MARKETBEAT 2023
Final Quarter Boosts European Hotel Deal Volumes.
A strong final quarter saw European hotel transactions reach nearly EUR 17 billion last year, according to new data from Cushman & Wakefield.
Across the year, 787 properties were sold comprising 106,000 rooms and totalling EUR 16.9 billion in value. This remains significantly below 2019 levels but is only 4% short of the 2022 total. In the last quarter, volumes reached EUR 5.4 billion, a 13% increase relative to Q4 2022 (EUR 4.8 billion).
Several major individual deals drove these volumes, including the sale of the Westin Paris Vendome, the Center Parcs Allgäu in Germany, the Six Senses Hotel Rome, the Mandarin Oriental and Hotel Sofia in Barcelona, and Haymarket House in London (office to hotel conversion).
According to the research, portfolio transactions represented one third of the 2023 total volume (vs. 28% in 2022 and 45% in 2019). Most of these portfolio transactions were completed in the last quarter of 2023, representing more than half of the volumes transacted (56% in Q4 2023, vs 31% in 2022 and 35% in 2019).
Spain, France, and the UK were the most active markets, accounting for 59% of European volumes in 2023 with a total of EUR 10 billion (+7% vs 2022). Among the top-10 markets, Spain, France, and Greece witnessed the largest growth relative to 2022, with an increase of 44%, 26% and 23%, respectively. In terms of the key urban markets, London, Paris, and Madrid continue to be on the top of the list for investors followed by Barcelona and Rome.
