The year 2024 marked a turning point for the European hotel investment market, with transaction volume soaring by 62% year-on-year, reaching 17.4 billion euros, according to the latest HVS European Hotel Transaction Report. This is the highest level since 2019, signaling the strong recovery of the industry.
The intense activity in buying and selling was fueled by the easing of interest rates and increased liquidity from private investment funds, mainly in large portfolio transactions. The average price per room increased by 9%, reaching 215,300 euros, while the average price per hotel stood at 29 million. euros, up 5%.
Athens’ position in the new investment reality
Among the cities with the highest investment activity, Athens stood out as one of the top five destinations in Europe for individual hotel transactions. The Greek capital was behind London, Paris, Madrid and Venice, confirming its potential as an investment hub.
Major European cities continued to attract investor interest, with London maintaining its lead, recording 3 billion euros in transactions – an amount corresponding to the sum of the five cities immediately following. Large portfolio deals played an important role in strengthening the British capital’s position as a global investment center.
Strong recovery and positive outlook
Private investors were the most active in the market, moving €8.6 billion – an increase of over 300% compared to 2023. Owner-operators followed, carrying out transactions worth €7.8 billion, recording a 90% increase.
Single hotel transactions reached €10.5 billion, with Paris standing out due to the Olympic Games, which pushed investments to €1.4 billion. Significant deals involved hotels such as the Mandarin Oriental Paris and the Pullman Paris Eiffel Tower.
The market shows signs of further growth in 2025, with analysts predicting a further reduction in interest rates and an increase in liquidity in capital markets, which is expected to further boost investment in the European hotel sector.
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