European Hotel Transactions Hit €11.6B, led by London

European hotel transactions soar to €11.6B in H1 2024, led by London. Projections suggest volumes will exceed €20B this year.

In the first half of 2024, European hotel transaction volumes soared to an impressive €11.6 billion, marking the highest six-month total since the pre-pandemic era of 2019. London, ever the magnet for investor interest, continues to reign supreme as the premier destination, closely trailed by the illustrious cities of Paris and Dublin.

Looking forward, projections suggest that these transaction volumes are poised to eclipse the €20 billion mark by the end of 2024, buoyed by a confluence of increasing debt liquidity and robust hotel performance metrics. According to recent data from Cushman & Wakefield, the first half of 2024 witnessed European hotel transactions reaching a five-year zenith, with a staggering €11.6 billion exchanged in the market.

The second quarter alone contributed €5.8 billion to this total, nearly doubling the figures from the same period in the previous year, which languished at a mere €3.0 billion in Q2 2023. This remarkable growth can be attributed to several landmark transactions, including the notable sales of the Pullman Paris Tour Eiffel, Hilton Paris Opera, Six Senses London, Shelbourne Hotel Dublin, and Park Hyatt Zürich. Notably, luxury hotels constituted nearly half of the transaction volumes in the first half of 2024, underscoring a significant trend towards high-end investments.

The UK, Spain, and France emerged as the most dynamic markets, collectively accounting for €7.8 billion in transactions—over two-thirds of the European total and reflecting a 62% increase compared to H1 2023. London, unsurprisingly, led the charge with the highest volume of transactions by city, followed by Paris, Dublin, Barcelona, and Rome, which rounded out the top five.

As we gaze into the crystal ball of the hospitality industry, the outlook remains optimistic, with expectations that transaction volumes will surpass the €20 billion threshold in 2024, driven by a favorable environment of increasing debt liquidity and stellar hotel performance. The stage is set for a vibrant and competitive market, where investors are likely to continue their pursuit of lucrative opportunities in the European hotel sector.