Europe: Resort consultancy HVS’s annual European Resort Valuation Index (HVI) reveals resort valuation grew solely 0.2 per cent throughout the continent in 2025.
HVS cited warfare, US management and world instability as causes denting development. Nonetheless, European journey demand remained excessive, recording three billion overnights, half of which had been worldwide, making for a 2.4 per cent enhance over 2024.
As well as, HVS mentioned that modest price development and small will increase in occupancy led to general constructive high strains, supported by leisure journey. Resort development was stimulated by price cuts from the European Central Financial institution, which dropped from three to 2 per cent, and the Financial institution of England.
To conduct its analysis, HVS examined worth adjustments in higher-end accommodations (usually 4 and 5 star) throughout 31 European cities.
Copenhagen noticed the best enhance in HVI at 5.9 per cent. Excessive demand with slowing provide pipelines together with stronger airport connections boosted the Danish capital to the highest of the record.
Athens, Bucharest, Madrid and Zurich rounded out the highest 5. Athen’s institutional investor friendliness led it to five.5 per cent development. Bucharest noticed a powerful economic system and RevPAR push it to 4.6 per cent. Tourism granted Madrid a 4 per cent enhance and the Swiss franc’s appreciation gathered Zurich a rise of three.7 per cent.
The worst performers had been Istanbul, Amsterdam, Frankfurt, London and Manchester. Istanbul’s resort market worth fell 7.6 per cent as its luxurious affordability label rings much less true amid excessive inflation, political instability and the lira’s depreciation. Amsterdam’s resort VAT jumped from 9 to 21 per cent, leading to a 5.9 per cent lower. Poor RevPAR in Frankfurt gathered a 5 per cent lower. London and Manchester each fell 3.4 per cent as a result of greater minimal wages, insurance coverage and property taxes.
HVS mentioned the Nordic international locations had been drivers of development, led by Copenhagen’s sturdy efficiency. Western Europe misplaced a step whereas Jap Europe gained one.
“Whereas general the HVI confirmed little motion in values throughout Europe as an entire, leisure demand continues to spice up resort efficiency, and subsequently values, throughout Mediterranean markets and in Northern Europe,” HVI co-author Margherita Rivetti mentioned. “In Jap Europe a mixture of leisure and company demand and extra secure inflation have pushed resort values up whereas in Western Europe there are extra blended outcomes.”
HVS predicts quite a lot of components to profit resort values in 2026. Relative AI disruption must be much less, and Europe’s power in tourism will proceed to be a bonus via excessive demand and decrease provide development.
However the outlook for the approaching 12 months stays blurred. The report was accomplished simply days into the US-Israeli warfare on Iran — and its affect on oil costs might have drastic results on the worldwide economic system. Whereas charges dropped in 2025, the agency mentioned that could possibly be worn out by inflationary results the longer the warfare on Iran continues. It notes some establishments already predict price hikes. Alongside the warfare’s results, over-tourism, owner-operator lease viability, and excessive debt prices had been all famous as negatives.
“Europe’s attraction to vacationers will stay sturdy, which coupled with its modest venture pipeline bodes properly for resort efficiency,” HVI co-author Sophie Perret mentioned. “Nonetheless, the battle within the Center East and subsequent oil disruption might have a extreme affect the longer it lasts, significantly on rates of interest which can then affect the financing and refinancing of resort transactions.”
Highlights:
HVS’s annual European Resort Valuation Index recorded 0.2 per cent development in resort values throughout the continent in 2025, citing warfare, US management and world instability as constraining components regardless of sturdy journey demand.
European tourism reached three billion in a single day stays in 2025 – a 2.4 per cent enhance over 2024, with worldwide guests accounting for half of all stays and leisure journey driving most development.
Copenhagen led valuation development at 5.9 per cent, adopted by Athens (5.5 per cent), Bucharest (4.6 per cent), Madrid (4 per cent) and Zurich (3.7 per cent), with Nordic international locations cited as development drivers.
Istanbul recorded the steepest decline at -7.6 per cent amid excessive inflation, political instability and foreign money depreciation, adopted by Amsterdam (-5.9 per cent), Frankfurt (-five per cent), London (-3.4 per cent) and Manchester (-3.4 per cent).
HVS famous Jap Europe gained floor whereas Western Europe lagged, with leisure demand boosting Mediterranean and Northern European markets.
The report warned the US-Israeli warfare on Iran might drive oil value will increase and reverse 2025’s rate of interest cuts, with potential extreme impacts on financing and refinancing of resort transactions if the battle continues.
