A 21% year-over-year increase in single-asset deals driven by high-net-worth-individuals (HNWIs) targeting upscale and upper-upscale properties highlighted €10.4 billion in transactions volume in Europe during the first half of 2025, according to HVS. In a matter of six years, HNWIs went from being the third smallest net buyer among the other investor classes in Europe to being the largest net buyer in H1 2025.
The largest net buyers over the first semester were HNWIs (€967 million) and real estate investment companies (€298 million). HNWIs also led all other investor classes in average price per room on acquisitions (€581,000 versus an average of €228,000).
Notable HNWI acquisitions in H1 2025 included the 20% stake acquisition of Firmdale Hotels by Swedish pharmaceutical entrepreneur Lennart Perlhagen for a reported £300 million (€364 million), the acquisition of the remaining 67% shares in the Four Seasons Astir Palace Hotel Athens by George Procopiou (a few months after having acquired the initial 33% shares), and the acquisition of the luxury Alpina Gstaad in Switzerland by an undisclosed U.S. investor for a reported SFr200 million (€210 million).
The largest net sellers were institutional investors (€424 million) and Real Estate Investment Trusts (€242 million).
HVS co-authors Maxime Gauthier and Sophie Perret posited that hotels have long been perceived as a highly specialist investment market, where both time and industry knowledge were necessary to reach a certain level of returns, often discouraging HNWIs from entering the market. Nonetheless, they said, the industry’s strong potential for inflation-hedging, diversification and real estate appreciation, as well as the increasing sophistication of the industry, where dedicated professional operations and asset management capabilities are present, increasingly convince affluent investors to consider hotels in parallel to other types of direct property investments.
H1 2025 deal data
Spain was the most sought-after market, leading the U.K., France and Germany, according to co-authors Maxime Gauthier and Sophie Perret, with overall deal volume slightly below H1 2024 levels.
An increase of 9% in the average number of rooms per hotel transacted led to a decrease in the average price per room of 8% compared to H1 2024.
Single-asset deals in Europe accounted for a record €7.1 billion of H1 2025, 12% higher than 2019 levels in real terms. Notable transactions included the sale of the 1,037-room Mare Nostrum Resort in Tenerife, acquired for €430 million by Spring Hotel Group from Brookfield AM. It also included the acquisition of the remaining shares of the Four Seasons Astir Palace Hotel Athens by George Procopiou from AGC Equity Partners.
After having soared in H1 2024, portfolio transaction activity contracted in H1 2025, decreasing by 30% to €3.3 billion. With the same number of transactions (24) as in H1 2024, portfolios included on average fewer hotels (6.1 hotels per portfolio in H1 2025 vs 7.8 in H1 2024) and fewer rooms (807 vs 973). Notable portfolio transactions included the acquisition of 28 hotels in the Nordics by CapMan Real Estate from Midstar Fastigheter AB and a 20% stake acquisition in Firmdale Hotels by Swedish businessman Lennart Perlhagen, both occurring in February, and Brookfield AM’s acquisition of Generator Hostels from Queensgate for €776 million in May.
More than half of the total transaction volume occurred in four countries: Spain (17%), the U.K. (16%), France (12%) and Germany (11%). London retains the title of most active city in the first semester (€827 million), well ahead of Paris (€537 million) and Berlin (€459 million).
By Jeffrey Weinstein
