HVS Report- 2024 German Hotel Transactions Image Credit Unsplash
HVS discusses the major resort transactions that took position in 2024 and looks at the changes in single-asset and investment deals over the years. Introduction 2024 marked a turning point for the European hotel investment market, with transaction volume rising 62 % year-on-year to reach €17.4 billion [1 ,] the highest level recorded since 2019 ( though still accounting for roughly two-thirds of the volume recorded in 2019 ). Lowering interest rates, combined with ample dried powder from Personal Capital investors, fuelled a resurgence in deal-making, especially in portfolio transactions where 2024 volumes were twice the level recorded in 2023. Despite uncertainty surrounding political issues and a year of intense international elections, travel demand remained strong, strengthening Europe’s position as a leading global tourism hub and accelerating RevPAR growth. With more transactions, higher resort values and increased investment trust, 2024 proved to be a season of comeback, setting the stage for continuing momentum in 2025. Total purchase amount for 2024 reached €17.4 billion, the highest level since 2019 and an amazing €6.7 billion increase over 2023, with assets accounting for nearly 40 % of the full. Chart 1: Total Hotel Investment Volumes 2007-24 Source: HVS– London OfficePricing &, Deal SizeThe average price per room was €215, 300 in 2024, an increase of 9 % over 2023 and around 5 % higher than in 2019, Hotels in 2024 transacted for an average price per hotel of €29 million ( a 5 % increase over 2023 ) and had an average of 135 rooms ( a 3 % decrease over 2023 ). Figure 2: Total Asset Quarterly Volumes 2024 vs. 2023 Resource: HVS– London OfficeSeasonality Unlike most years, deal volume increased in the first half of the year in 2024, but merely 10 % of that time was activity ahead of Q2. &# 13, Chart 3: Top Countries ( Total Activity By Volume ) &# 13, &# 13, Source: HVS– London Office&# 13, Chart 4: Top Cities ( Total Activity By Volume ) Source: HVS– London OfficeActivity by Investor TypeIn 2024, Private Equity investors were the most active, buying and selling nearly €8.6 billion in assets ( a 315 % increase over 2023 ), followed by Owner-Operators which transacted a combined €7.8 billion of properties ( a 90 % increase over 2023 ), Real Estate Investment Companies largely transacted similar volumes ( €5.9 billion ) as in 2023 (-0.9 % ), Along with Private Equity, Hotel Investment Companies were substantial net buyers in 2024 ( + €1.9 billion ), The largest net sellers, with a negative balance of €1.7 billion ( compared to a positive balance of €2.8 billion in 2019 ) were Institutional Investors, who showed very little buying appetite in 2024 as a reflection of the higher interest rate environment. Chart 5: Capital Flows By Investor Type ( € ) Source: HVS – London Office
Chart 6: Capital Flows By Investor Source Region ( € ) Source: HVS– London OfficeSingle AssetsSingle asset transaction activity increased significantly in 2024, led primarily by the combination of interest rate cuts across European central banks and strong hotel trading performances, which ultimately fuelled investors ‘ appetite for hotel deals.
Origin: HVS– London OfficeVolumeSingle property transaction amount in 2024 totaled €10.5 billion, which was 44 % higher than 2023 levels and just 13 % below 2019. This also made 2024 the fourth highest year on record for single asset hotel transaction volume in Europe, Activity was split evenly between H1 and H2 2024, with Q4 being the busiest quarter, Supported by a larger number of high-value transactions and a higher average price per room, the average price per hotel surged by 35 % above 2023, The three most liquid European single asset markets in 2024 were Spain ( €1.8 billion ), the UK ( €1.8 billion ) and France ( €1.7 billion ). Italy and Ireland saw significant increases in single asset activity in 2024 ( + €493 million and up for sixth ), followed by Greece ( + €478 million and up for seventh ), and each accounted for 17 % of total transaction activity. Chart 7: Single Asset Top Countries ( Total Activity by Volume ) &# 13, Source: HVS– London Office&# 13, Chart 8: Single Asset Investment Volumes 2007-2024 Source: HVS – London Office
Mandarin Oriental Paris, FranceChart 9: Single Asset Transaction Level By Quarter 2024 vs. 2023 Source: HVS– London OfficeCitiesMost big Western cities attracted more investment in 2024 than they did in 2023. Paris was the most liquid single asset city market for the second year in a row, with more than €1.4 billion in transaction volume in 2024, a 65 % increase over 2023. Investors rushed into this sector ahead of the Olympics, with volume reaching €1 billion ( an 80 % increase over 2023 ), strongly fueled by the forward-sale of the Six Senses in Bayswater and the purchase of The Standard in King’s Cross. The transaction of the Hotel Miguel Angel Occidental placed Madrid in third place, a three-place improvement over 2023, with the Spanish capital recording single asset investment volume of €435 million ( a €270 million increase over 2023 ). Barcelona trailed just behind at €334 million ( a €55 million decrease over 2023 ), Some of the impressive ranking improvements included Venice ( €327 million and climbing into fifth place ) and Athens ( €309 million and reaching sixth place ). Real Estate Investment Companies, which transferred a total of €5.1 billion in single asset acquisitions and disposals ( a 26 % increase over 2023 ), were the biggest capital movers in 2024. Institutional Investors were the largest net sellers of single asset in 2024, with €822 million shifting. Private Equity followed, with total net sales reaching €403 million, Real Estate Investment Companies were net sellers in 2024, with net sales of €341 million, while High-Net-Worth-Individuals and Real Estate Investment Trusts remained largely neutral. Chart 10: Single Assets – Capital Flows By Investor Type ( € ) Source: HVS– London OfficeCapital by ContinentEuropeans were the most active buyers of single assets in 2024, accounting for 82 % of total transaction activity (up from 81 % in 2023 ), recording net sales of €722 million and 5 %, respectively, while Middle Eastern interest was largely unbalanced in 2024, with acquisition volumes closely mirroring disposal volumes, at €153 million and €165 million, respectively. Chart 11: Single Assets – Capital Flows by Investor Source Region ( € ) Source: HVS – London Office
A list of notable single asset transactions that took place over the course of 2024 is presented below. Hilton Paris Opera, FranceSix Senses London, UKPark Hyatt Zurich, SwitzerlandGrand Hyatt Athens, Greece Chart 12: Notable Single-Asset Transactions ( € ) Source: HVS– London OfficeTo request an expanded list of transactions, contact lhorch@hvshwe .com. Portfolio AssetsTransactions in 2024 dramatically increased over the previous year, surpassing the level of 2023 records, and accounted for 40 % of all European investment activity. Most of the annual difference was due to a huge increase in portfolio transactions in the UK, which was 2024’s most active transaction market for portfolios by some distance, having been home to some of Europe’s largest deals, including Starwood’s acquisition of 10 Edwardian hotels and Blackstone’s acquisition of 33 Village Hotels. Overall, the average number of hotels per portfolio doubled, increasing from 4.3 in 2023 to 8.6 in 2024. While price per room reached €161, 400 in 2024 ( a 12 % increase over 2023, although still 18 % below 2019 ), the average price per hotel decreased to €19, 377, 000 ( a 9 % drop from 2023 ), in part due to the high number of economy portfolios that transacted with small-room-count properties, such as the portfolio of 30 ibis-branded hotels across Germany sold by AccorInvest to BC Partners.
Source: HVS– London OfficeVolumePortfolio transaction volume in 2024 totaled €6.8 billion, which was again twice the volume in 2023, but still 55 % below the 2019 volumes. However, it surpassed the 18-year average for the first time since 2019, Most of the increase in 2024 happened in the first half of the year, with H1 2024 portfolio volumes being more than five times those witnessed in H1 2023, By comparison, portfolio activity in H2 2024 was almost the same as in H2 2023 at €2.6 billion and €2.5 billion, respectively. Chart 13: Quarterly Volumes of Portfolio Transactions 2024 vs. 2023 Source: HVS – London Office
Chart 14: Portfolio Investment Volumes 2007-2024 Source: HVS – London Office
Chart 15: Top Portfolio Countries ( Total Activity By Volume ) &# 13, Source: HVS – London Office &# 13, CitiesApproximately half of the hotels that operated across European portfolios in 2024 were located in secondary cities. In terms of the volume of transactions that were transacted, London had the highest volume ( a$ 1.6 billion increase over 2023 ), followed by Amsterdam, where Fattal made the largest acquisition of the Zien Group. Investor TypeAcquisition activity by Private Equity groups was the strongest of all investors in 2024 ( having been virtually absent in 2023 ), with a total volume of €4 billion, representing 58 % of all portfolio transactions, Next in line were Owner-Operators, which acquired roughly €1.6 billion worth of portfolios in 2024 ( a €1 billion increase over 2023 ), and amounted to 24 % of total volume, Real Estate Investment Companies, which represented 32 % of the volume in 2023, contributed only 9 % in 2024, witnessing a 44 % decrease in acquisition volume, Net portfolio transaction volumes show Private Equity groups were still front-runners with net acquisitions of €2.4 billion in 2024, followed by Real Estate Investment Companies with €328 million, The largest net sellers in 2024 were Institutional Investors, Owner-Operators and Real Estate Investment Trusts at €874 million, €792 million and €748 million, respectively. Chart 16: Portfolios – Capital Flows By Investor Type ( € ) Source: HVS– London OfficeCapital by ContinentIn contrast to 2023, European investors did not account for 45 % of total volume. Led by Private Equity groups, North American investors were responsible for the most acquisitions, with a total volume of €3.6 billion in 2024, having been largely absent in 2023, Despite also being major buyers in 2024, European investors were net sellers overall, with total net disposals of €1.1 billion, in contrast to the net acquisitions of €2.3 billion made by North American investors, Having been net buyers of portfolios in 2023, Middle Eastern investors, primarily led by ADIA, recorded net sales of €1.1 billion in 2024. A selection of portfolio transactions that took place over the course of 2024 is presented in Chart 17: Portfolios – Capital Flows By Investor Source Region ( € ) Source: HVS– London OfficeNotable Portfolio Transactions
Chart 18: Notable Portfolio Transactions ( € ) Source: HVS– London OfficeTo request an expanded list of transactions, contact lhorch@hvshwe .com. Conclusions Hotel Transactions in 2024: A Market ReignitedAfter two years of significant interest rate increases following the Russian invasion of Ukraine ( and the resulting energy cost spikes that led to global inflation ), 2024 marked a turning point for European capital markets. As debt market conditions improved and cost inflation softened, combined with relatively little supply growth, transaction activity surged to its highest level for five years, registering an impressive 62 % growth over 2023 ( although still being only two-thirds of the volume registered in 2019 ). The year saw a number of ground-breaking single-asset transactions, including those in the ultra-luxury sector, as well as a significant increase in portfolio deals, which were twice the volume of those in 2023. Higher volume, more hotels, more rooms and rising average prices per room compared to 2023 – all clear indicators of a market regaining momentum. Private Equity groups led market activity as both buyers and sellers, generating the most significant transaction volumes. They were followed by Owner-Operators, while traditionally influential Institutional Investors remained more restrained, a reflection of the lingering effects of the high-interest-rate environment. Leading Markets: The UK Reclaims the Top PositionThe UK surpassed Spain ( €2.5 billion ) and France ( €2.0 billion ) in terms of transactions, recording €6.2 billion. Paris alone accounted for €1.5 billion in deals, as transactions surged ahead of the 2024 Olympic Games. With$ 3 billion in deals, London managed to surpass the top five most active cities in terms of overall sales, keeping it as Europe’s most transacted city. This was largely driven by major portfolio transactions, reinforcing London’s status as a key global investment hub. Looking ForwardAs we advance into 2025, hotel investors will continue to be interested in the affordability and cost of financing. With interest rates expected to decline further, capital markets should see a resurgence in liquidity, boosting transaction volumes across key European markets. Although there are still difficulties with refinancing, especially for highly leveraged assets, widespread demise is still a possibility. Banks and alternative lenders have demonstrated greater flexibility in restructuring debt, and hotel assets continue to outperform most other real estate classes in investor preference. Owner-Operators and private equity companies are expected to continue to be the dominant market players, while value-add investments will continue to be popular because of the return potential in a higher interest rate environment. Institutional Investors—previously hesitant due to interest rate volatility—could re-enter the market more aggressively should rates continue their downward trajectory. The institutional buyer’s return would give the anticipated increase in portfolio transactions, but especially for core and core + assets, which would improve the liquidity and valuation of leased hotels. As seen in 2024, urban markets will remain the prime focus for investors, with cities like London, Paris, Madrid and Rome continuing to attract the highest capital inflows. In addition to the major metropolitan areas, resort destinations in Southern Europe, especially those in Spain, Italy, and Greece, are expected to continue to garner significant attention as investors look to capitalize even more on the booming leisure- and experience-driven travel industry. While macro uncertainties persist, particularly in relation to shifting global trade dynamics, the hospitality sector continues to outperform other real estate asset classes. Investors are acknowledging that many demographics, particularly those with an emphasis on luxury and experience, still prioritize spending money on travel. Europe’s ability to weather economic and geopolitical challenges while maintaining its status as the world’s most popular destination highlights the sector’s long-term attractiveness. This is expected to increase transaction activity in 2025 in addition to the rising interest from Middle Eastern, North American, and Asian investors. ]1] Only transactions above €7.5 million are considered in this analysis. Regarding Gauthier Champlong Gauthier Champlong graduated from the EHL Hospitality Business School and is currently an Associate at HVS Hodges Ward Elliott. His primary focus is on financial analysis and preparing marketing materials for debt advisory, asset disposal and operator selection mandates. He speaks French fluently and fluently both in English and German. For further information, please contact: gchamplong@hvshwe .com or on + 44 7742 882 834. Lukas Horch is an analyst at HVS Hodges Ward Elliott and holds a Global Hospitality Education MBA. Since joining, he has assisted in preparing marketing materials and research analysis on asset disposals and debt advisory mandates across key European markets. He speaks German as a native. For further information, please contact: lhorch@hvshwe .com or on + 44 7785 224 189. Lukas Horch is an analyst at HVS Hodges Ward Elliott and holds a Global Hospitality Education MBA. Since joining, he has assisted in preparing marketing materials and research analysis on asset disposals and debt advisory mandates across key European markets. He speaks German as a native. For further information, please contact: lhorch@hvshwe .com or on + 44 7785 224 189. Matthias Hecht has previously worked at Marriott International and is an Associate Director at HVS Hodges Ward Elliott. His primary responsibilities include financial analysis, development of marketing materials and due diligence. Mattias is a native German speaker and graduate of the Swiss Glion Institute of Higher Education with a Bachelor’s degree ( Hons ). For further information, please contact: mhecht@hvshwe .com or on + 44 7759 840 771. This article first appeared on HVS.
