Hotel investment in Europe reached approximately €11.7 billion in the first half of 2026, according to the latest MarketBeat Europe Hospitality report. Spain emerged as the continent’s second-largest market by transaction volume, trailing only the United Kingdom. Despite a 9.5% year-on-year dip compared to the same period last year, the total volume remained 19.5% above the ten-year average, suggesting the sector retains underlying strength.
The United Kingdom led the European rankings with €3.22 billion in hotel transactions, a figure that represents a 74% increase year-on-year. Spain followed closely with around €2.6 billion, marking growth of almost 35% compared with the first half of 2025. Madrid also featured prominently among Europe’s most active cities, ranking fourth behind London, Paris, and Vienna.
London led the city rankings with €2.3 billion invested across 24 properties. A notable transaction included the sale of The Westminster London, Curio Collection by Hilton, for more than €300 million. The high value being placed on premium assets in established locations is evident in this specific deal.
Capital has focused on quality and scale. Transactions worth more than €100 million increased by 30%, both for individual hotels and portfolios, while upscale and upper-upscale properties accounted for half of total investment.
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“Fewer assets are being traded, but those changing hands are high-end, well-located hotels that command high prices,” said Frederic Le Fichoux, EMEA Head of Hotel Transactions at Cushman & Wakefield. The firm notes that the figures point to a more selective market rather than a broad-based decline in activity.
Private investors accounted for 54% of acquisitions and 46% of disposals, while capital from Asia-Pacific rose by 86%. This shift reflects investors’ search for greater geographical diversification and the recovery of capital flows that had fallen during the pandemic. Average investment per room also increased by 9% year-on-year, reaching €228,416.
Supply and performance metrics
Operational performance has also continued to support investor appetite. European RevPAR reached €101, up 3% year-on-year, while hotel supply grew by 2.9%. Supply growth was particularly strong in Southern Europe, where it exceeded 5%. The disparity in supply growth between Northern and Southern regions may influence future investment flows as developers attempt to catch up with demand in the south.
Cushman & Wakefield expects transaction volumes to gain momentum in the second half of 2026 as several portfolios and corporate transactions currently on the market reach completion. The expected pipeline could help lift full-year investment activity, reinforcing the position of European hospitality as a key target for investors despite the market’s increasingly selective approach.
