Overview
- European hotel values rose 0.2% in 2025 as average rates and occupancy ticked up, helped by a sub‑5% development pipeline.
- Hotel transactions reached €22.6 billion, up 30% year over year, with single‑asset deals surging 68% to €15.6 billion though total volume stayed 17% below 2019.
- Copenhagen led value gains at 5.9%, followed by Athens, Bucharest, Madrid and Zürich, while Istanbul fell 7.6% and Amsterdam dropped 5.9% after a January 2026 VAT rise.
- London and Manchester declined 3.4% as new supply and higher labor and tax costs pressured profitability.
- ECB and Bank of England rate cuts and easing wage growth supported the sector, but HVS cautions that Middle East–driven inflation shocks could reverse financing tailwinds in 2026.