European Hospitality Update

Unleashing the Potential of European Hospitality Real Estate

As the European hotel sector moves firmly beyond recovery, the Cushman & Wakefield European Hotels Update H2 2025 provides an in-depth assessment of market performance across demand, operating metrics, investment activity and outlook.

Hotel demand continued to expand across all regions in 2025, supported by resilient leisure travel, the return of business and events-related demand, and improved air connectivity.

Performance gains moderated but remained positive, with RevPAR growth driven primarily by rate increases and steadily rising occupancy, while operational results varied by market amid differing supply and cost dynamics.

Profitability remained healthy across most major European cities, underpinned by revenue growth and disciplined cost management, despite ongoing inflationary pressures. Investor confidence strengthened further in 2025, with European hotel transaction volumes reaching their highest level since 2019, supported by a rebound in single-asset deals and renewed institutional interest.

Looking ahead, the outlook for 2026 is cautiously optimistic, with continued demand growth expected, limited new supply in many markets, and improving financing conditions supporting gradual yield compression for prime assets, alongside ongoing value discovery opportunities elsewhere.

European Hospitality Update Includes

Latest tourism trends shaping hotel demand, driven by shifting traveller behaviour, economic factors, and international visitor flows. 

Hotel performance insights, including key profitability drivers, occupancy rates, and revenue trends across major urban and resort markets. 

Investment market analysis, highlighting capital flows, emerging hotspots, and the evolving strategies of investors navigating a changing financial environment. 

Why This Matters

The hospitality sector continues to be shaped by global economic shifts, demographic trends, and evolving guest expectations. For investors, developers, and operators, staying informed is essential for identifying opportunities, mitigating risks, and making strategic decisions that drive long-term success in an increasingly competitive market.