Hotel Investment Holds Steady in Q1 2025, with a Promising Hotel Investment Outlook in Europe European hotel transaction volumes reached €5.5 billion in Q1 2025, flat year on year with 2024 but still 24% above the 2020–2024 five-year average. With several deals in the making, we expect 2025 volumes to surpass last year and reach about €25Bn. This is assuming a continued gradual recovery of the lending landscape. With an increased maturity in the hotel sector and growing interest in the Hotels Sector from core institutional capital, market volumes are forecast to grow further in coming years. Hotels are typically more resilient than most other asset classes in a high inflation environment, due to their ability to quickly react and adjust to increase prices, whilst at the same time having opportunities to manage their costs. As such, the typical investment model offers investors value-add opportunities in a high interest rates environment. In addition, some assets, such as ultra luxury/…
