Global Asset Solutions’ 2024 European Hotel Transactions report shows a thriving luxury hotel market, with five-star hotels commanding a significant price premium over four-star establishments. The study reflects a total transaction volume of €10.95 billion, with the UK, France, Spain, and Italy being the most active investment markets.
The 2024 European Hotel Transactions report by Global Asset Solutions reveals a flourishing market for luxury hotel transactions, predominantly in the five-star hotel sector. The data indicates a significant price premium these premium establishments command over their four-star counterparts, demonstrating robust investor interest in the European luxury segment.
The total volume of transactions in 2024 reached an impressive €10.95 billion, with 137 hotel transactions recorded. The average deal size was €79.9 million, reflecting strong investor confidence. Importantly, five-star hotels commanded €865,334 per key, substantially outperforming the four-star category, which stood at €295,339 per key.
One notable transaction was the historic Bauer Hotel on Venice’s Grand Canal, which was sold for a reported €300 million. The hotel will undergo extensive renovations before reopening, adding to the growing trend of reinvigorating iconic hotels across Europe.
The most active markets for hotel investments in 2024 were the UK, France, Spain, and Italy. Together, they accounted for over half of the total transaction volume across Europe. The UK and France led the market, comprising nearly a third of all transactions.
Paris and London were the leading cities in transaction volume, accounting for nearly a quarter of the total volume. Paris led the market with €1.38 billion in transactions, closely followed by London with €1.27 billion. Both cities continue to exhibit strong fundamentals as they remain iconic destinations for business and leisure travelers.
Institutional investors held most of the market share, accounting for 27.6% of the investment volume. They were followed by owner-operators and private equity firms, which accounted for 21.2% and 19.7% of the investment volume, respectively.
The potential of the hotel sector is increasingly being recognized by both new and established investors, with many prioritizing the luxury segment. However, although luxury hotels can deliver significant returns, they are also among the most complex properties available. Therefore, experienced asset management is essential to drive profits and develop the best investment strategy.
The strong investment appetite for luxury hotel assets continued into the following year. In January alone, 11 transactions were recorded. During the month, 1,841 hotel rooms were transacted at an average price of €652,000 per key, marking a 40.2% increase from the 2024 average across four—and five-star hotels. This underscores the continued confidence in premium hospitality investments.
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