Coming out of a high-inflation, high-interest-rate environment, which negatively impacted hotel transactions in Europe in 2023, transaction activity increased to the highest levels since 2019 in the first half of 2024.

Reaching €10.6 billion, the total volume transacted increased by 123% year-on-year, already reaching the total volume for the whole of 2023.

There were 20% more transactions this semester, with a decrease of 11% in the number of rooms per hotel, translating into a 30% increase in price per room over H1 2023.

Source: HVS – London Office

General Commentary

• Transaction volumes were quite evenly spread over the semester, with January recording the highest level of activity, followed by April and May.
• The single-asset to portfolio transactions volume ratio returned to 1:1, similar to the long-term average pre-pandemic.

Chart 1: H1 2024 Transaction Volumes Twice Those of 2023

Source: HVS – London Office

• Single-asset transaction volumes increased 50% year-on-year last semester, totalling €5.8 billion, surpassing H1 2019 totals for the first time since the start of the pandemic. Notable transactions included the 138-room Park Hyatt Zürich, acquired by Oaktree Capital Management, Trinity Investments and UBS AM REPM MM from Hyatt International, and the proposed Six Senses London, acquired by Gruppo Statuto from C C Land Holdings for £180 million (€211 million).

• Portfolio transaction activity doubled year-on-year, despite eight fewer transactions compared to H1 2019. While the volume reached €4.7 billion, the highest since 2019, it remains nearly 40% behind pre-pandemic levels. Notable transactions included the acquisition of ten Radisson Blu Edwardian hotels in the UK by Starwood Capital from Edwardian Hotels London for an amount close to £800 million (€450,000 per room), along with Blackstone’s acquisition of 33 Village Hotels across the UK from KSL for approximately £800 million (€215,000 per room).

• The largest net buyers over the first semester were private equity firms (€1.1 billion) and hotel investment companies (€894 million). The largest net sellers were owner-operators (€785 million) and real estate investment trusts (€735 million).

• Nearly two-thirds of total transaction volume occurred in the UK (38%), Spain (14%) and France (12%). London was the most active city (€2.0 billion) before Paris (€1.0 billion) and Zürich (€276 million).

Read the full report here