London consolidated its position as the most attractive destination for hotel investment in Europe, with a transaction volume exceeding €2.2 billion. It is followed by Paris with €1.4 billion, and Madrid, which climbs the ranks to become the third-highest capital-raising city on the continent, registering €816 million in hotel transactions during the year. The Spanish capital stood out not only for volume, but also for increasing interest in repositioning and conversion projects, in line with new hospitality trends that prioritize experience, design, and sustainability.
The Cushman & Wakefield report highlights that, despite macroeconomic tensions, inflation, and rising interest rates, investor appetite for the hotel sector remains strong. Institutional funds continue to play a leading role, while private investors and hotel operators are increasingly active, aiming to expand their presence in key cities or enter new markets with high growth potential.
Regarding the most in-demand asset types, mid- to high-range urban hotels top the list, particularly those located in central areas with high tourist traffic and the ability to generate diversified income through gastronomy, wellness, and corporate events. However, there is also growing interest in the luxury vacation segment, particularly in Mediterranean destinations such as the Balearic Islands, the French Riviera, and the Italian coastline, which have seen significant revaluation due to the boom in premium tourism.
Cushman & Wakefield also highlights the acceleration of ESG (Environmental, Social, and Governance) criteria as a decisive factor in investment decisions. Increasingly, hotels must meet standards for energy efficiency, responsible management, and social commitment to be considered attractive for investment portfolios. This approach not only responds to regulatory pressure and market expectations, but also translates into better long-term profitability.
In an environment moving toward digitalization, sustainability, and personalized services, the hotel sector reaffirms itself as one of the most attractive asset classes in European real estate. The outlook for 2024 is positive, with increasing stability in financial markets, strong tourism demand, and sustained investor interest in tourism as a strategic opportunity for growth and diversification.
The recovery of hotel investment in Europe not only marks a return to pre-pandemic levels, but also ushers in a new phase in which product quality, customer experience, and commitment to sustainability will be key to long-term success.
