- European hotel investment totalled €11.7 billion in H1 2026
- Transactions above €100 million rose 30% year-on-year
- Transaction volume from Asia-Pacific investors grew 86% year-on-year
- London remained Europe’s single most active city overall, ahead of Paris, Vienna and Madrid
European hotel investment totalled €11.7 billion in the first half of 2026, according to Cushman & Wakefield’s latest MarketBeat Europe Hospitality report.
This was 19.5% above the 10-year average, albeit a 9.5% decline year-on-year. Activity was underpinned by high-profile single-asset deals, including the Pullman Paris Tour Eiffel, The Westminster Curio Collection in London, and the Park Hyatt Vienna, while portfolio activity remained concentrated in the UK and Spain.
Frederic Le Fichoux, Head of Hotel Transactions, EMEA at Cushman & Wakefield, said: “What we saw in the first half of 2026 is a highly selective market rather than one that is slowing down. Fewer assets are trading, but the ones that are moving are premium, well-located hotels commanding strong pricing.”
The return of Asia-Pacific capital
Transaction volume from Asia-Pacific (APAC) investors grew 86% year-on-year, helping offset declines from the Americas (-87%) and Middle East/Africa (-31%).
“The rise in activity from APAC is largely a reassessment of global exposure and a desire for diversification, mostly driven by geopolitical reasons,” said Le Fichoux. “Europe is seen as well priced and a stable environment compared to other parts of the world. Another factor is that APAC investment into European hotels dropped off significantly during Covid and the years that followed, so what we’re seeing now is a natural recovery as much as fresh conviction.”
€100 million-plus deals multiplying
Transactions above €100 million rose 30% year-on-year, spanning both single assets and larger portfolios.
“Hotel investors are focusing on upper upscale and luxury hotels that have seen strong performance growth, and these assets often trade above €100 million,” said Le Fichoux. “Competition is rising thanks to greater access to capital and a wave of non-traditional investors, both institutional and private, entering the sector and seeking to make a statement with prime, trophy assets.”
The average price per room rose 9% year-on-year to €228,416, with private investors continuing to dominate activity on both sides of the table, representing 54% of acquisitions and 46% of disposals. Half of all invested volume in H1 2026 went into Upper Upscale and Upscale hotels.
London drives a resurgent UK market
The United Kingdom led all markets by transaction volume at €3.22 billion, up 74% year-on-year, followed by Spain at €2.66 billion, up 34%.
“London is the magnet, and it has captured a large share of the UK’s volume,” said Le Fichoux. “We’ve already seen ten single-asset and portfolio transactions above €100 million so far this year, with a few more currently on the market. The Curio Westminster achieved a record price above €300 million through a strategic acquisition from RIU Hotels, which proves London remains a very strategic location for many investors.”
London remained Europe’s single most active city overall, with €2.3 billion transacted across 24 properties, ahead of Paris, Vienna and Madrid.
Hotel supply across Europe expanded 2.9% year-on-year, fastest in Southern and Eastern Europe. Europe-wide RevPAR reached €101, up 3% year-on-year, with Eastern Europe posting the strongest growth at 6% and Milan (+24%) and Budapest (+15%) recording the largest city-level gains.
Outlook for H2 2026
“There are a number of large transactions on the market, including several sizeable portfolios and platform deals, that will positively influence volumes once they close,” said Le Fichoux. “Europe remains a strategic investment market for many investors navigating different challenges elsewhere in the world, and hotels continue to be a growing asset class as institutional investors reallocate capital to rebalance their portfolios. Southern Europe remains a particular favourite, offering a strong mix of well-performing urban and resort markets.”