European hotel investment reached €11.7 billion in the first half of 2026

European hotel investment reached €11.7 billion in the first half of 2026, according to Cushman & Wakefield's MarketBeat Europe Hospitality report. The total sits 19.5% above the 10-year average, but it marks a 9.5% decline year-on-year as deal velocity tightened.

What is driving the deal mix?

Activity concentrated in high-profile single-asset transactions. The Pullman Paris Tour Eiffel, The Westminster Curio Collection in London, and the Park Hyatt Vienna all changed hands. Portfolio deals remained concentrated in the UK and Spain.

"What we saw in the first half of 2026 is a highly selective market rather than one that is slowing down," said Frederic Le Fichoux, Head of Hotel Transactions, EMEA at Cushman & Wakefield. "Fewer assets are trading, but the ones that are moving are premium, well-located hotels commanding strong pricing."

How is APAC capital reshaping cross-border flows?

Transaction volume from Asia-Pacific investors grew 86% year-on-year. That surge offset steep declines from the Americas (-87%) and Middle East/Africa (-31%).

Le Fichoux attributed the shift to a reassessment of global exposure and a desire for diversification, "mostly driven by geopolitical reasons." Europe is viewed as well priced and stable compared with other regions. He characterised the rebound partly as a natural recovery after the Covid-era pullback, alongside fresh conviction.

Are prime assets commanding stronger pricing?

Transactions above €100 million rose 30% year-on-year, spanning both single assets and larger portfolios. The average price per room climbed 9% to €228,416.

Private investors dominated activity on both sides of the table. They accounted for 54% of acquisitions and 46% of disposals. Half of all invested volume flowed into Upper Upscale and Upscale hotels.

"Hotel investors are focusing on upper upscale and luxury hotels that have seen strong performance growth, and these assets often trade above €100 million," Le Fichoux said. He added that competition is rising through greater access to capital and a wave of non-traditional investors, both institutional and private, "seeking to make a statement with prime, trophy assets."

Where is regional capital concentrating?

The United Kingdom led European markets with €3.22 billion in transaction volume, up 74% year-on-year. Spain followed at €2.66 billion, up 34%.

London alone captured €2.3 billion across 24 properties, retaining its position as Europe's most active city ahead of Paris, Vienna and Madrid. The Westminster Curio Collection traded above €300 million through a strategic acquisition from RIU Hotels, setting a record for the asset.

"London is the magnet, and it has captured a large share of the UK's volume," Le Fichoux said. "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."

How are operating metrics tracking?

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.

Eastern Europe posted the strongest RevPAR growth at 6%. Milan delivered the largest city-level gain at +24%, followed by Budapest at +15%.

What does H2 2026 hold?

Several sizeable portfolios and platform deals remain on the market. Their closure will lift second-half volumes materially.

"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," Le Fichoux said. He flagged Southern Europe as a particular favourite, citing "a strong mix of well-performing urban and resort markets."

Watch Cushman & Wakefield's next MarketBeat update for confirmation of whether the closed pipeline restores full-year transaction volume to or above the €20bn mark.