Hotel investment in Europe reached approximately €11.7 billion in the first half of 2026, according to Cushman & Wakefield’s latest MarketBeat Europe Hospitality report, with Spain emerging as the continent’s second-largest market by transaction volume.
The European total was 9.5% lower than in the same period last year, but remained 19.5% above the ten-year average, highlighting the continued resilience of the hospitality investment market despite a more selective investment environment.
The UK led the European rankings, with €3.22 billion in hotel transactions, up 74% year-on-year. Spain followed with around €2.6 billion, representing growth of almost 35% compared with the first half of 2025.
Madrid also featured prominently among Europe’s most active cities, ranking fourth behind London, Paris and Vienna. London led the ranking with €2.3 billion invested across 24 properties, supported by transactions such as the sale of The Westminster London, Curio Collection by Hilton, for more than €300 million.
The moderation in overall European volumes coincided with a stronger concentration of capital in higher-quality assets and larger deals. Transactions worth more than €100 million increased by 30%, both for individual hotels and portfolios, while upscale and upper-upscale properties accounted for half of total investment.
“Fewer assets are being traded, but those changing hands are high-end, well-located hotels that command high prices”, said Frederic Le Fichoux, EMEA Head of Hotel Transactions at Cushman & Wakefield, adding that the figures point to a more selective market rather than a broad-based decline in activity.
Average investment per room also increased by 9% year-on-year, reaching €228,416. Private investors accounted for 54% of acquisitions and 46% of disposals, while capital from Asia-Pacific rose by 86%. Cushman & Wakefield links the increase to investors’ search for greater geographical diversification and the recovery of capital flows that had fallen during the pandemic.
Operational performance has also continued to support investor appetite. European RevPAR reached €101, up 3% year-on-year, while hotel supply grew by 2.9%. Supply growth was particularly strong in Southern Europe, where it exceeded 5%.
Cushman & Wakefield expects transaction volumes to gain momentum in the second half of 2026 as several portfolios and corporate transactions currently on the market reach completion. The expected pipeline could help lift full-year investment activity, reinforcing the position of European hospitality as a key target for investors despite the market’s increasingly selective approach.
