HVS discusses the main hotel transactions that took place in the first half of 2025 and looks at the trends in single-asset and portfolio transactions over the years.
Transaction activity remained high in the first half of 2025, marginally shy of the 2024 levels over the same period but, at €10.4 billion, above the average for the last decade. Single-asset deals were at the forefront of the investment landscape in H1 2025, with the total number of transactions increasing by 21% year-on-year. An increase of 9% in the average number of rooms per hotel transacted has led to a decrease in the average price per room of 8% compared to H1 2024.
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Source: HVS – London Office
General Commentary
- Transaction volumes were most concentrated in February and June, with January, as usual, recording the lowest level of activity.
- After having seemingly stabilised in 2024, the single-asset-to-portfolio transactions volume ratio returned to levels achieved during the pandemic (70%/30%) on account of decreased portfolio activity in the first semester. This ratio was 55%/45% for the same period of 2024.
Chart 1: H1 2025 Transaction Volumes Well Above Ten-Year H1 Average 
Source: HVS – London Office
- Single-asset transaction volumes increased by 22% year-on-year last semester, totalling €7.1 billion. Notable transactions included the sale of the 1,037-room Mare Nostrum Resort in Tenerife, acquired for €430 million by Spring Hotel Group from Brookfield AM. It also included the acquisition of the remaining shares of the Four Seasons Astir Palace Hotel Athens by George Procopiou from AGC Equity Partners.
- After having soared in H1 2024, portfolio transaction activity contracted in H1 2025, decreasing by 30% to €3.3 billion. With the same number of transactions (24) as in H1 2024, portfolios included on average fewer hotels (6.1 hotels per portfolio in H1 2025 vs 7.8 in H1 2024) and fewer rooms (807 vs 973). Notable portfolio transactions included the acquisition of 28 hotels in the Nordics by CapMan Real Estate from Midstar Fastigheter AB and a 20% stake acquisition in Firmdale Hotels by Swedish businessman Lennart Perlhagen, both occurring in February, and Brookfield AM’s acquisition of Generator Hostels from Queensgate for €776 million in May.
Chart 2: H1 2025 Transaction Volumes Maintain
The Pace Set in 2024 
Source: HVS – London Office
- The largest net buyers over the first semester were High-Net-Worth Individuals (€967 million) and Real Estate Investment Companies (€298 million). The largest net sellers were Institutional Investors (€424 million) and Real Estate Investment Trusts (€242 million).
- More than half of the total transaction volume occurred in four countries: Spain (17%), the United Kingdom (16%), France (12%) and Germany (11%). London retains the title of most active city in the first semester (€827 million), well ahead of Paris (€537 million) and Berlin (€459 million).
Chart 3: Spain and the UK Vie for the Largest Transaction Volume in H1 2025 
Source: HVS – London Office
The Rise of HNWI Investors
Global markets have experienced a notable degree of volatility since the start of 2025, principally related to the policies of the current US administration. The lack of clarity as to the intent, implementation and duration of those policies created widespread uncertainty, resulting in significant fluctuations in markets throughout the world. This volatility has been further compounded by ongoing geopolitical uncertainties, which continue to weigh on investor sentiment. Despite this uncertainty, which includes a potential if not yet evidenced decrease in inbound tourism from the US, single-asset transactions established a new record in H1 2025, reaching €7.1 billion, 12% higher than 2019 levels in real terms.
Chart 4: HNWIs become the highest net buyer amongst all investors, acquiring nearly €1 billion more than they disposed of (€ millions) 
Source: HVS – London Office
One of the driving factors behind the push in single-asset transactions is the rise of hotels as an investment asset class for high-net-worth individuals. HNWI capital is increasingly being deployed in alternative assets and private markets, as investors seek greater expected returns, and the resilience of hotels post-pandemic has placed them solidly in their list. In a matter of six years, HNWI went from being the third smallest net buyer among the other investor classes, to being the largest net buyer in H1 2025.
Echoing the increased appetite for investment in luxury hotels noticed in the past year, as outlined in our H1 2024 European Hotel Transactions report, high-net-worth individuals primarily invested their capital in upscale and upper-upscale hotels this semester, leading all other investor classes in average price per room on acquisitions (€581,000 versus an average of €228,000).
Notable HNWI acquisitions this semester included the 20% stake acquisition of Firmdale Hotels by Swedish pharmaceutical entrepreneur Lennart Perlhagen for a reported £300 million (€364 million), the acquisition of the remaining 67% shares in the Four Seasons Astir Palace Hotel Athens by George Procopiou (a few months after having acquired the initial 33% shares), and the acquisition of the five-star Alpina Gstaad in Switzerland by an undisclosed US investor for a reported SFr200 million (€210 million).
Outlook
Hotels have long been perceived as a highly specialist investment market, where both time and industry knowledge were necessary in order to reach a certain level of returns, often discouraging HNWIs from entering the market. Nonetheless, the industry’s strong potential for inflation-hedging, diversification and real estate appreciation, as well as the increasing sophistication of the industry, where dedicated professional operations and asset management capabilities are present, increasingly convince affluent investors to consider hotels in parallel to other types of direct property investments.
In 2024, Europe recorded close to 750 million tourist arrivals, marking a 1% increase over 2019 and 5% growth compared to 2023, according to UN Tourism, capturing 58% of total visitors worldwide. Every subregion exceeded pre-pandemic levels, with the exception of Central and Eastern Europe, which continues to be affected by the Russo-Ukrainian conflict. Despite an uncertain start to the year marked by the implementation of trade tariffs and potential repercussions on US outbound tourism, stability has improved since 2 April (President Trump’s ‘Liberation Day’ when he introduced sweeping tariffs on foreign imports), further encouraging high-net-worth investors to deploy their capital in the industry.
About Maxime Gauthier
Maxime Gauthier joined the HVS London office as a consulting and valuation analyst in January 2024. Fluent in English and French, he holds a BSc (Hons) from EHL Hospitality Business School and an MSc in Finance from NOVA School of Business and Economics in Lisbon. Prior to joining HVS, Maxime gained experience in finance with Marriott in Singapore and with a brokerage firm in France. His primary responsibilities at HVS include valuations of single assets and hotel portfolios, feasibility studies and market research within the EMEA region. For more information, contact [email protected].
About Sophie Perret
Sophie Perret is managing director of the HVS London office. She joined HVS in 2003, following ten years’ operational experience in the hospitality industry in South America and Europe. Originally from Buenos Aires, Argentina, Sophie holds a degree in Hotel Management from Ateneo de Estudios Terciarios, and an MBA from IMHI (Essec Business School, France and Cornell University, USA). Since joining HVS, she has advised on hotel investment projects and related assignments throughout the EMEA region, and is responsible for the development of HVS’s business in France and the French-speaking countries. Sophie completed an MSc in Real Estate Investment and Finance at Reading University in 2014. Sophie is also a certified surveyor and a member of the RICS. For further information, please contact: [email protected] or +44 20 7878-7722 (Work)
