The European resort funding market noticed one other yr of robust efficiency in 2025 with whole transaction quantity reaching €22.6 billion, an increase of 30% on the earlier yr, in accordance with world resort consultancy HVS London and its resort brokerage arm HVS Hodges Ward Elliott.
The robust efficiency was the hey spotlight of the newest HVS European Resort Transactions Report, launched on the 2026 Worldwide Hospitality Funding Discussion board (IHIF) in Berlin at the moment (23 March).
That is the third highest transaction stage ever recorded, with some 461 offers involving 725 resorts and over 107,000 rooms, making 2025 one of the best performing yr because the peak yr of 2019.
Accommodations transacted for a median worth of €31.1 million, up 7% on the earlier yr. Whereas the typical worth per room was €210,000, a fall of two% over 2024 ranges.
Notably, personal fairness exercise dropped by 39% on the earlier yr, leaving owner-operators and actual property funding corporations the dominant forces within the transaction market.
The UK retained its place as Europe’s most energetic resort funding market, accounting for 25% of whole European quantity. France rose to second place, pushing Spain into third place.
Germany, the fourth most energetic market, delivered one of many yr’s most spectacular recoveries, reaching €2.5 billion, greater than double that of 2024.
“The momentum of 2024 was sustained and broadened in 2025, underpinned by continued rate of interest easing, bettering debt market circumstances, resilient resort working efficiency throughout most of Europe and a powerful provide of investor capital,” stated Lukas Horch, affiliate at HVS Hodges Ward Elliott and co-author of the report.
Single asset transactions made up practically 70% of whole transactions, totalling 411 resorts and reaching a report excessive quantity of €15.6 billion, the strongest yr ever recorded in Europe.
The three most liquid European single asset markets in 2025 had been the UK (€3.4 billion), France (€3.0 billion) and Spain (€2.1 billion). Germany, the Czech Republic and Austria additionally noticed important transaction volumes.
When it comes to cities, London overtook Paris as probably the most liquid single asset market in Europe in 2025, with a complete quantity of €1.8 billion, up 78% on the earlier yr.
The yr’s most notable transactions included the W London (brokered by HVS Hodges Ward Elliott), the Vacation Inn Kensington and the Novotel London West.
Paris noticed single asset transaction volumes attain €1.6 billion, up 13% on 2024, pushed by the sale of the Resort des Grands Voyageurs and Pullman Paris Montparnasse.
Europeans had been probably the most energetic consumers of single belongings in 2025, as is common, accounting for 81% of transaction exercise, with Actual Property Funding Corporations being the biggest capital movers and shifting €8.9 billion of single asset acquisitions and disposals. Proprietor-Operators had been the biggest internet consumers of single belongings at €1.7 billion.
Portfolio quantity remained pretty regular in 2025, recording a 3% improve in quantity to €7 billion.
The UK, which had beforehand dominated the portfolio panorama resulting from a number of key offers in 2024, noticed volumes fall by €2.2 billion, whereas Sweden, Greece, Germany and Denmark all recorded robust will increase in portfolio offers.
The variety of resort portfolios transacted elevated by 22%, though the overall variety of resorts per deal decreased 11%, highlighting a development in direction of smaller, extra focussed portfolios.
London recorded the very best quantity of portfolio offers, at €487 million, though this represented solely 1 / 4 of 2024’s recorded quantity. Athens was second within the portfolio rankings, with a quantity of €271 million, adopted by Paris at €267 million.
European buyers had been additionally the biggest portfolio consumers of 2025, though with acquisitions of €5.8 billion and gross sales of €5.7 billion, their quantity remained moderately impartial.
North American consumers took high slot as the biggest internet consumers, recording internet portfolio acquisitions of €599 million.
Proprietor-operators had been the strongest portfolio buyers at €3.3 billion, adopted by actual property funding corporations (€1.7 billion). Personal fairness buyers decreased their exercise, though remained the very best internet consumers, reaching €564 million.
“The tailwinds that drove resort funding exercise in Europe throughout 2025 had remained broadly intact at the beginning of 2026,” stated Gauthier Champlong, senior affiliate at HVS Hodges Ward Elliott and co-author of the report.
“Nevertheless, the battle within the Center East has now launched a brand new layer of complexity to the European hospitality panorama, appearing as each an operational headwind and an surprising catalyst for regional demand.
“A substitution impact is rising as world travellers redirect their itineraries in direction of perceived safer options in Europe. This development is prone to strengthen the longer the instability persists within the Center East and 2026 might due to this fact grow to be the yr of short-haul journey.”
