The European hotel investment market in 2024 conveyed a clear message: prime, luxury hotel assets remain not only resilient but increasingly in demand. With €10.95 billion transacted across 137 deals, the year underscored an undeniable reality: high-end hospitality investments continue to flourish, even amid shifting market dynamics. From iconic five-star resorts to exclusive four-star properties, demand for premium assets is driving exceptional transaction volumes as investors compete to secure the most valuable properties in Europe’s leading destinations. luxury hotels europe investments

Global Asset Solutions stands at the forefront of this transformation. With deep expertise in hotel asset management, the firm specializes in unlocking untapped potential in every investment, skillfully navigating market complexities to maximize returns. Backed by decades of industry leadership, Global Asset Solutions is not merely observing these trends but actively shaping them, as demonstrated by its involvement in markets such as Madrid.

This white paper presents an overview of all significant hotel transactions within the four-star and five-star segments. It offers an insider’s perspective on the latest transaction trends, key investor movements, and the firm’s distinctive approach to enhancing high-end hospitality assets. The report also highlights how Global Asset Solutions continues to set industry benchmarks and redefine what is possible in hotel investment.

The Big Numbers of the Year

The total transaction volume for 2024 reached €10.95 billion, with 137 hotel transactions recorded. The average deal size stood at €79.9 million, with transactions exclusively involving four-star and five-star properties. Throughout the year, 23,561 rooms changed ownership, with the average price per key exceeding €465,000, reaffirming the strong valuations attached to high-end hospitality assets. In some markets, such as Portugal, France, and Italy, the price per key exceeded €600,000, whereas in Sweden, Poland, and the Netherlands, it remained below €250,000 per key.

Luxury hotels Europe investments – Quarterly Trends

Transaction activity fluctuated throughout the year, reflecting investment cycles, macroeconomic conditions, asset availability, and seasonal demand. A breakdown of the year by quarter provides a clearer picture of market evolution:

• Q1 2024: Total transaction volume reached €2.03 billion, with 4,130 rooms transacted.
• Q2 2024: Activity surged, with €3.17 billion in total volume and 6,491 rooms changing hands.
• Q3 2024: The market softened, with a total volume of €1.93 billion and 4,239 rooms transacted.
• Q4 2024: The strongest quarter of the year, recording a total volume of €3.82 billion and a record 8,701 rooms transacted, demonstrating a significant year-end push.

Stars Come with a Price

This report focuses exclusively on four-star and five-star hotels, highlighting their role in the hospitality investment market. The following analysis compares 2024 transactions by hotel category, showcasing how star ratings impact deal volume, transaction values, and price per key.

Total Volume of Transactions by Hotel Category

Despite having nearly half the number of transactions, five-star hotels attracted the majority of total investment volume, underscoring their premium valuation and investor preference for high-end assets.

Price per Key and Total Rooms Transacted:

• Five-Star Hotels: €865,334 per key | 7,001 rooms transacted.
• Four-Star Hotels: €295,339 per key | 16,560 rooms transacted.

Largest Deals of 2024

Park Hyatt Zurich – Zurich, Switzerland

In April 2024, the Park Hyatt Zurich was acquired by a private equity firm based in the Middle East in partnership with a European institutional investor. The transaction, valued at approximately €500 million, represents one of the largest hotel deals in Switzerland that year. The acquisition was driven by the hotel’s prime location, brand appeal, and strong demand from high-net-worth travelers.

Pullman Paris Tour Eiffel – Paris, France

The sale of the Pullman Paris Tour Eiffel reinforced Paris’s status as a premier destination for hotel investment. The €330 million transaction, amounting to approximately €767,000 per key, highlights the city’s robust market fundamentals and strong investor appetite ahead of the 2024 Olympics. The deal also reflects increasing cross-border investment trends, with a U.S. financial firm partnering with a French entity to secure the asset.

Rosewood Bauer Venice – Venice, Italy

The historic Bauer Hotel in Venice, set to be rebranded as Rosewood Venice, was acquired in late 2024 by Mohari Hospitality and Omnam Investment Group. The purchase price, approximately €300 million, along with an additional €150 million allocated for renovations, underscores investor confidence in ultra-luxury assets. This deal exemplifies the growing trend of transforming heritage hotels into modern luxury properties.

Geographic Analysis of Europe’s Hotel Investment

The United Kingdom, France, Spain, and Italy emerged as the most active hotel investment markets in 2024, collectively accounting for over half of the total transaction volume across Europe. Switzerland commanded the highest average transaction size and price per key due to its focus on five-star property transactions. luxury hotels europe investments

In conclusion, the European hotel investment market in 2024 demonstrated the continued appeal of high-end hospitality assets, with five-star hotels commanding premium valuations and four-star properties providing more frequent investment opportunities. The year’s largest transactions illustrate the increasing flow of global capital into Europe’s top-tier hotel markets, reinforcing the sector’s resilience and long-term growth potential.

Early indicators from January 2025 suggest that the strong investment appetite for luxury hotel assets continues, with 11 transactions recorded in the first month alone.