European Hotel Investment: €22.6 Billion Traded in 2025

Europe's hotel investment market continues to attract substantial capital, but transaction activity is not translating into equivalent growth in underlying asset values. Three HVS studies, alongside an analysis of Marriott's asset-light business model, reveal where value is created, who captures it, and what investors should examine before committing capital.

The European hotel investment paradox: more capital, limited value growth

Europe's hotel investment market recorded €22.6 billion in transactions in 2025, a 30% increase on the previous year, according to HVS.

Over the same period, however, estimated European hotel values increased by just 0.2%, as measured by the HVS European Hotel Valuation Index.

The first half of 2026 introduced another apparent contradiction: hotel transaction volumes declined by 10% on the comparison reported by HVS, while the average price per room of transacted properties increased by 18%.

How can investment activity rise so sharply while underlying hotel values barely move?

The answer lies in a fundamental distinction that is often overlooked in discussions about hospitality real estate.

Transaction volumes, prices achieved on completed deals, and the underlying economic value of hotel assets measure different things.

Transaction volumes indicate how much capital is being deployed.

Average transaction prices are influenced by the characteristics and quality of the properties changing hands.

Underlying asset valuations, by contrast, reflect an assessment of future cash flows, operating performance, investment requirements and the returns demanded by capital providers.

These figures are therefore not statistically contradictory. They describe different dimensions of the same market.

And their implications for investment decisions are significant.

A market can attract billions of euros in new investment without delivering a corresponding increase in the underlying value of its hotel assets.

This distinction should inform every decision involving hotel acquisitions, disposals, refinancing, refurbishment or repositioning.

In this research, InvestimentiAlberghieri.it brings together three major HVS studies to examine the relationship between transaction activity, asset valuations, operating profitability and investment risk.

The objective is not simply to describe market movements.

It is to understand what those movements mean for hotel owners, institutional investors, real estate companies and hospitality operators.

1. European hotel investment in 2025: transaction volumes surged, but the average price per room declined

According to HVS's 2025 European Hotel Transactions report, published in March 2026, the European hotel investment market experienced a substantial increase in activity.

Indicator	2025	Change vs. 2024
Total transaction volume	€22.6 billion	+30%
Number of transactions	461	Approximately +61%
Hotels transacted	725	Approximately +21%
Rooms involved	More than 107,000	Approximately +33%
Average price per hotel	€31.1 million	+7%
Average price per room	€210,000	−2%
Single-asset transaction volume	€15.6 billion	+48%
Portfolio transaction volume	€7.0 billion	Approximately +3%

Europe recorded its third-highest annual hotel transaction volume on record and its strongest performance since 2019.

Single-asset transactions reached an all-time high, reflecting improved financing conditions, renewed investor appetite and the resilience of hospitality operating performance.

Yet one figure deserves particular attention.

Despite the increase in deployed capital, the average transaction price per room declined by 2%.

This challenges the assumption that greater investment activity necessarily leads to widespread asset appreciation.

The market became more active.

It did not necessarily become more profitable.

Liquidity and value creation are not the same thing

Transaction growth can be driven by numerous factors:

Strategic acquisitions by hotel owners and operators.
Portfolio disposals by institutional investors.
Private equity fund maturities and exit strategies.
Capital recycling and changes in asset allocation.
Improved debt availability and financing conditions.
Opportunistic purchases of underperforming or repositioning assets.

None of these factors, in isolation, demonstrates that hotels have become more valuable.

Higher transaction volumes indicate that buyers and sellers are reaching agreements.

They do not prove that the underlying assets are generating stronger sustainable cash flows.

For investors, three questions must therefore be considered separately:

Is the market sufficiently liquid?
Is the acquisition price consistent with relevant comparable transactions?
Do the asset's expected cash flows justify the total capital commitment and associated risks?

The first question concerns market liquidity.

The second concerns pricing.

The third determines whether the investment makes economic sense.

A hotel can be highly marketable and still represent a poor investment at the asking price.

2. The Hotel Valuation Index: tourism recovery has not translated into equivalent asset appreciation

The HVS 2026 European Hotel Valuation Index tracks changes in hotel values across 31 major European markets.

Its methodology uses valuation models based primarily on representative four- and five-star hotels.

The analysis incorporates operating profitability, market expectations, capital costs and investor return requirements.

Its findings are particularly revealing.

Estimated European hotel values increased by only 0.2% in 2025, compared with 2.0% in 2024.

The comparison with pre-pandemic levels is even more instructive.

The European index stood at 1.73 in 2019 and 1.68 in 2025.

On that basis, estimated values remained approximately 2.9% below their 2019 level in nominal terms.

This suggests that the recovery in international tourism, room rates and commercial performance has not translated uniformly into a full recovery in hotel asset values.

Why a hotel can generate more revenue yet be worth less

The explanation is fundamentally financial.

A hotel's economic value depends on the future cash flows it can generate, the capital required to preserve its competitive position and the return investors demand for assuming the associated risks.

An increase in occupancy or average daily rate may improve revenue while being offset by:

Higher payroll and labour-related expenses.
Increased energy and maintenance costs.
Rising distribution and customer acquisition expenses.
Mandatory refurbishment and brand-standard investments.
Higher borrowing costs.
An increase in investors' required rates of return.

The outcome can be a commercially stronger hotel that fails to deliver a corresponding improvement in investment value.

This is why a credible hotel valuation must extend beyond ADR, RevPAR and top-line revenue.

It requires a detailed understanding of gross operating profit (GOP), normalised EBITDA, recurring capital expenditure and sustainable cash flow.

Research and advisory work published by RobertoNecci.it examines these relationships through the lenses of financial performance, management control, corporate governance and hospitality business valuation.

3. Rome, Milan and Florence: three Italian markets, three different value trajectories

The European Hotel Valuation Index reveals substantial differences across individual markets.

Estimated change in hotel values in 2025

City	Annual change
Copenhagen	+5.9%
Athens	+5.5%
Madrid	+4.0%
Zurich	+3.7%
Milan	+3.6%
Rome	+2.3%
Paris	0.0%
Florence	−1.8%
London	−3.4%
Frankfurt	−5.0%
Amsterdam	−5.9%
Istanbul	−7.6%

Source: HVS European Hotel Valuation Index 2026. Estimated annual changes expressed in euros.

The differences between Italy's three markets are especially instructive.

Milan recorded a 3.6% increase, supported by its diversified international demand base, business activity, events and ongoing hospitality investment.

Rome achieved 2.3% growth, benefiting from its international appeal and a market encompassing multiple demand segments and hotel categories.

Florence experienced a 1.8% decline, illustrating how even well-established international destinations can undergo periods of valuation pressure.

These figures do not imply that Milan automatically represents a better investment destination than Rome or Florence.

The results concern representative assets within individual markets, not every property located there.

The investment value of a hotel depends on far more specific characteristics.

A property in a growing market may still face weak margins, substantial refurbishment requirements or an asking price that exceeds its economic potential.

Conversely, a hotel in a slower-growing destination may offer an attractive entry valuation, operational improvement opportunities and a favourable risk-adjusted return.

A hotel does not become a sound investment simply because it is located in an attractive city.

It becomes one when its purchase price, total capital requirements, sustainable profitability and risks are economically aligned.

4. First-half 2026: fewer transactions, higher prices per room

According to HVS, European hotel transaction volumes reached €9.4 billion in the first half of 2026, representing a reported 10% decline compared with the equivalent period in 2025.

Despite the slowdown, transaction volume remained 11% above the ten-year first-half average.

Indicator	H1 2026	Reported annual change
Transaction volume	€9.4 billion	−10%
Number of transactions	183	−5%
Hotels transacted	255	−19%
Rooms involved	Approximately 35,000	−23%
Average price per hotel	€36.7 million	+12%
Average price per room	€268,000	+18%

The most eye-catching figure is the average price per room, which reached its highest level in a decade.

However, HVS makes an essential distinction.

The increase was primarily attributable to the higher quality of assets sold during the period, rather than evidence of widespread hotel value appreciation.

The danger of applying inappropriate transaction benchmarks

An investor might observe the European average transaction price of €268,000 per room and use it as a starting point for valuing an individual hotel.

Without further adjustments, that approach would be misleading.

An average derived from transactions involving upscale and luxury assets cannot be applied indiscriminately to independent hotels, secondary locations, properties requiring refurbishment or businesses with materially different earnings profiles.

A meaningful comparison must reflect:

Location and competitive positioning.
Hotel category and operating model.
Property size and physical condition.
Normalised operating profitability.
Lease, franchise and management agreements.
Future capital expenditure requirements.
Financing conditions and investor return expectations.

This is why the investment advisory approach associated with Investhotel.it focuses on the economic viability of individual transactions rather than the mechanical application of headline market averages.

5. Italy: €679 million invested in six months, but market liquidity remains concentrated

The United Kingdom remained Europe's largest hotel investment market in the first half of 2026.

Country	H1 2026 investment volume	European share
United Kingdom	€3,021 million	32%
Spain	€1,515 million	16%
France	€1,284 million	14%
Italy	€679 million	7%
Austria	€573 million	6%
Portugal	€519 million	6%
Germany	€448 million	5%

The United Kingdom, Spain and France accounted for approximately 62% of total European transaction volume.

Italy ranked fourth, with 17 hotels and 2,189 rooms transacted.

The average price per room reached approximately €310,000, above the European average.

However, the composition of Italian transaction activity deserves closer examination.

During the period, Covivio acquired four hotels in Milan for approximately €217 million.

That single transaction represented roughly 32% of Italy's total first-half hotel investment volume.

The significance is clear.

A relatively small number of large transactions can materially influence national statistics without necessarily signalling greater liquidity across the broader hospitality property market.

What this means for Italian hotel owners and investors

Italy's investment prospects cannot be assessed solely through major institutional transactions.

The more important question is which individual assets can attract investment, under what conditions and at what price.

One potential obstacle is the gap between owners' price expectations and investors' required returns.

The problem is not always a shortage of interested buyers.

Sometimes it is the absence of an economically sustainable agreement between sellers and capital providers.

An asset may possess considerable historical, emotional or commercial significance without those qualities automatically justifying its asking price.

For both buyers and sellers, a rigorous assessment of achievable value can help establish more credible expectations and support better-informed negotiations.

6. Upscale and luxury hotels attract 72% of investment capital. But do higher prices mean better returns?

In the first half of 2026, upscale hotels accounted for 46% of European hotel transaction volume.

Luxury properties contributed a further 26%.

Together, the two categories represented approximately 72% of invested capital.

The average transaction price for luxury hotels reached €514,000 per room.

These figures confirm the appeal of high-quality hospitality assets to investors.

They do not, however, establish that such properties necessarily deliver superior financial returns.

Luxury hotels typically involve higher operating costs and greater capital intensity.

Staffing requirements, service standards, food and beverage operations, maintenance, technology and recurring product upgrades can place considerable demands on both operating margins and invested capital.

The appropriate question is therefore not simply whether a luxury hotel can command higher room rates.

It is whether the incremental revenue is sufficient to remunerate the full capital commitment required to acquire, develop, operate and maintain the property.

A luxury hotel can represent an excellent investment.

But prestige is not a substitute for sustainable profitability.

7. The Marriott model: owning hotel real estate is not necessarily the most capital-efficient way to participate in hospitality growth

One of the most important questions in contemporary hotel investment concerns the distribution of economic value between property owners, hotel operators and international brands.

Major hotel groups have increasingly adopted business models that allow them to expand without directly financing most of the underlying real estate.

Marriott International provides a particularly relevant example.

As examined in the research Marriott Operates 1.8 Million Rooms but Owns Almost No Hotels: Who Really Makes the Money?, the group operated or affiliated more than 1.8 million rooms and units across 10,082 properties as of 30 June 2026.

Only approximately 0.7% fell within its owned or leased category, which also includes leased properties rather than exclusively owned real estate.

Marriott's business model is predominantly asset-light.

The company can expand through franchise, licensing and management agreements with third-party property owners.

This allows it to monetise brand recognition, distribution systems, customer relationships, loyalty programmes and operational expertise without committing the same amount of property capital as individual hotel owners.

The relationship between brand and owner economics

Affiliation with an international hotel group can improve a property's commercial positioning, visibility and access to demand.

But the economic benefits must be measured against the associated costs.

Depending on the contractual structure, an owner may face:

Franchise or management fees.
Distribution and loyalty programme contributions.
Initial property improvement plans.
Recurring refurbishment and brand-compliance investments.
Contractual restrictions affecting future operating decisions.
Termination provisions and constraints on asset disposal or refinancing.

As a result, revenue growth does not necessarily translate into a proportional increase in the cash flow available to the property owner.

An illustrative brand-affiliation scenario

Consider an independent hotel evaluating affiliation with an international brand.

Annual normalised financial impact	Amount
Expected incremental revenue	+€600,000
Incremental operating profit before new affiliation costs	+€180,000
Additional fees and system charges	−€100,000
Additional annual provision for recurring capital expenditure	−€50,000
Incremental cash flow available	+€30,000

Suppose the affiliation also requires an initial €1 million investment in property upgrades and compliance with brand standards.

The incremental cash flow may be insufficient to justify that capital commitment.

For illustration, capitalising the additional €30,000 annual cash flow at 7.5% produces a theoretical value increase of €400,000.

Against an initial €1 million investment, this implies a negative difference of approximately €600,000, before considering timing, execution risk and transaction-specific factors.

These figures are purely illustrative. They do not represent Marriott's financial performance or the economics of any actual brand agreement.

The example does not suggest that international brand affiliation is inherently unattractive.

It demonstrates why the decision should be supported by a property-specific financial model and contractual assessment.

The objective is not to secure the most prestigious brand. It is to identify the operating and contractual structure that delivers the most attractive sustainable return to the owner.

For a detailed examination of the financial relationship between hotel ownership, management contracts, franchising and global brand economics, read:

Marriott Operates 1.8 Million Rooms but Owns Almost No Hotels: Who Really Makes the Money?

8. What is a hotel really worth? A €14 million investment case

To understand the financial implications of an acquisition, consider a hypothetical hotel investment.

An investor is evaluating the purchase of an urban hotel in Italy.

The property has potential for operational improvement but requires an initial refurbishment programme.

Proposed investment structure

Item	Amount
Acquisition price	€12,000,000
Initial capital expenditure	€2,000,000
Total capital commitment	€14,000,000

The purchase price represents only part of the investment.

Assessing financial viability requires an understanding of the total capital commitment and the cash flows the hotel may produce after repositioning.

Consider three stabilised operating scenarios.

Three scenarios, three different values

Indicator	Downside	Base case	Upside
Annual normalised cash flow	€850,000	€1,050,000	€1,250,000
Capitalisation rate	8.5%	7.5%	7.0%
Theoretical stabilised asset value	€10.00m	€14.00m	€17.86m
Total capital commitment	€14.00m	€14.00m	€14.00m
Theoretical value difference	−€4.00m	€0	+€3.86m

The cash flow in this example represents a normalised amount available to remunerate total invested capital after operating costs and allowances for recurring capital expenditure, but before debt service and investor-specific taxes.

Asset values are calculated through direct capitalisation. The example does not model future growth, time to stabilisation, transaction costs or the additional components of a full discounted cash flow analysis.

What does this example demonstrate?

The hotel itself does not change.

The room count remains identical.

The location is unchanged.

The seller's asking price is still €12 million.

What changes are the assumptions concerning sustainable cash flow and the return required by the investor.

Under the downside scenario, the theoretical stabilised value is €4 million below the total capital commitment.

Under the base case, the theoretical asset value equals invested capital, leaving no initial value-creation margin before allowing for additional costs and investment risk.

Under the upside scenario, the potential theoretical value uplift is approximately €3.86 million.

An acquisition that initially appears attractive can become financially weak if projected operating performance or capital market assumptions prove overly optimistic.

The critical question is not simply how much the seller is asking.

It is how much an investor can reasonably pay while still achieving an acceptable risk-adjusted return.

Before committing capital, assess the economics of the transaction

If you are considering acquiring, selling or repositioning a hotel, a preliminary financial and strategic assessment can help identify material risks, capital requirements and the conditions under which the investment may be viable.

For an initial discussion of your project, contact info@investimentialberghieri.it.

9. Capital expenditure: when refurbishment creates value — and when it destroys it

The previous example highlights one of the most frequently underestimated variables in hotel investment: the capital required to preserve or improve an asset's competitive position.

Refurbishing a hotel does not automatically increase its economic value.

The incremental financial benefit must be assessed against the full cost of the investment.

Consider a €1.5 million refurbishment programme and an illustrative capitalisation rate of 8%.

Incremental annual cash flow	Theoretical value uplift	Capital expenditure	Theoretical net value impact
€80,000	€1,000,000	€1,500,000	−€500,000
€120,000	€1,500,000	€1,500,000	€0
€176,000	€2,200,000	€1,500,000	+€700,000

The initial investment is identical across all three scenarios.

The outcome is determined by the incremental economic return.

In practice, the analysis becomes more complex once implementation timelines, temporary revenue disruption, construction risk and the cost of capital are incorporated.

Capital expenditure should therefore be assessed through a financial model that considers both expected returns and the timing and risk of those returns.

A refurbishment can improve the physical product and strengthen a hotel's market positioning without generating enough incremental economic value to justify the investment.

This consideration is particularly important for properties requiring major renovation or capital-intensive upgrades under international brand agreements.

10. Investor strategies are shifting: private equity sells while real estate investment companies buy

Another important development concerns the changing composition of hotel investment capital.

In the first half of 2026, real estate investment companies became the largest net-buying investor category, with net acquisitions of approximately €2.1 billion.

Private equity firms emerged as the largest net sellers, recording net disposals of approximately €1.3 billion.

High-net-worth investors, who had been prominent net buyers in the first half of 2025, became net sellers of approximately €377 million.

European capital accounted for 91% of total acquisition volume, compared with 80% in the equivalent period of 2025.

These figures suggest a rotation in capital ownership and a shift in investment allocation strategies.

They do not necessarily indicate that private equity has lost confidence in the sector.

Asset sales may reflect fund maturities, successful exits, liquidity requirements or portfolio rebalancing.

Nevertheless, the change matters for both prospective sellers and potential buyers.

A long-term real estate investor may value an asset differently from an opportunistic fund or a hotel operating company.

Their investment decisions reflect different costs of capital, holding periods, financing structures, operational synergies and return requirements.

Market value must therefore be distinguished from the investment value that a particular buyer may attribute to a specific asset.

Understanding investor strategies and transaction structures becomes an increasingly important component of hotel investment analysis.

11. Five questions that can change an investment decision

The HVS research demonstrates why broad market statistics cannot substitute for a property-specific assessment.

Before pursuing an acquisition or major repositioning programme, investors should address five fundamental questions.

1. Is the asking price financially sustainable?

The proposed purchase price should be tested against sustainable cash flows, relevant comparable transactions, future capital requirements and investment risk.

A price that appears consistent with market benchmarks may still be excessive for a property requiring substantial capital expenditure.

2. Is the reported profitability sustainable and transferable?

A credible assessment requires the normalisation of GOP, EBITDA and cash flow.

Non-recurring items, related-party transactions, non-market lease payments and inconsistent cost allocations can materially distort the financial picture.

The key question is not simply what the hotel earned historically, but what an appropriately managed operation can sustainably generate in the future.

3. Has the full capital commitment been identified?

The acquisition price is not the total investment cost.

Investors must also consider transaction expenses, initial refurbishment, ongoing maintenance, working capital, possible operational disruption and contingency reserves.

Failing to recognise these requirements can lead to a material overstatement of expected returns.

4. Is the proposed operating structure the most economically attractive?

Owners should compare the available options.

Independent operation, leasing, franchising and third-party management can produce materially different risk and return profiles.

The decision should reflect the incremental cash flow available to ownership, not merely the reputation of the operator or brand.

Through HotelManagementGroup.it, the operational dimension of this assessment can be examined in relation to management efficiency, organisational structure and sustainable hotel profitability.

5. Will the investment remain viable if expectations are not met?

Every material hotel investment should be stress-tested.

The analysis should assess the effects of:

Lower-than-expected occupancy.
Weaker ADR growth.
Higher labour and operating costs.
Capital expenditure overruns.
Increased financing costs.
Delays in operational stabilisation.
Lower-than-expected exit valuations.

An investment that only works under an optimistic scenario has an inherent structural vulnerability.

12. The outlook for 2027: which hotels are likely to remain attractive to investors?

The HVS research suggests that Europe's hospitality sector continues to attract substantial investment capital.

The strong performance recorded in 2025 and the moderation observed in the first half of 2026 are not necessarily conflicting signals.

They may represent different phases of an increasingly selective investment environment.

Future performance will depend on several interconnected factors.

Tourism demand and operating profitability. Revenue resilience will need to translate into sustainable operating margins and cash flow.

Cost of capital. Less favourable financing conditions could place downward pressure on asset values, even where operational performance remains positive.

Asset quality and competitiveness. Investors may increasingly differentiate between well-maintained properties and hotels requiring major refurbishment.

Operating and contractual structures. The returns available to owners will depend partly on how financial benefits and risks are allocated between property owners, operators and brands.

Market liquidity. Established destinations may retain advantages, although not necessarily across every asset category or price point.

With full-year 2026 results not yet available, it would be premature to assume a uniform increase in European hotel values during 2027.

A more defensible approach is to consider three scenarios.

Upside scenario

Stable financing conditions, resilient demand and stronger operating cash flows could support hotel valuations, particularly in supply-constrained markets.

Base-case scenario

Revenue growth may be partly absorbed by rising costs, resulting in relatively stable asset values and greater differentiation between investment opportunities.

Downside scenario

Persistent inflation, more expensive financing, weaker demand or higher capital expenditure requirements could reduce operating profitability and place pressure on valuations.

Across all three scenarios, asset quality remains important.

But quality alone is not enough to protect invested capital.

Investors must understand the relationship between operating performance, entry valuation, financing and exit assumptions.

13. The real investment opportunity is not predicting the market. It is understanding the value of an individual hotel.

The combined findings of the HVS studies and the Marriott business model lead to an important strategic conclusion.

Hotels should not be analysed solely as real estate assets.

They operate at the intersection of property ownership, operating businesses, contractual relationships, distribution platforms and financial capital.

Hotel owners, operating companies and international brands may benefit from industry growth in very different ways.

The acquisition price must therefore be assessed alongside the economic structure of the underlying business.

A successful investment depends on answering four questions:

What is the hotel actually worth?

What level of sustainable profitability can it generate?

How much capital will be required to preserve its competitiveness?

What return will remain available to investors after operating costs, contractual commitments, financing and risk?

These questions should form the foundation of every preliminary investment assessment.

The most expensive mistake is not necessarily buying a hotel in the wrong destination.

It may be buying a good hotel at a price that leaves insufficient room to earn an appropriate return on invested capital.

The same principle applies to sellers.

An asking price unsupported by credible financial analysis can extend negotiations, weaken investor interest and reduce the likelihood of completing a transaction.

Conclusion: successful hotel investment begins with understanding value

Europe's hotel investment market has demonstrated that it can attract billions of euros even when underlying asset value growth remains limited.

But capital availability does not eliminate investment risk.

It makes the accurate measurement of that risk even more important.

The challenge is to distinguish between assets that are genuinely capable of creating value and those whose prices reflect expectations that future cash flows may struggle to support.

The real competitive advantage is not investing before everyone else. It is understanding, before everyone else, where value is created, what puts it at risk and the conditions under which it can be preserved.

Buying, selling or repositioning a hotel? Assess the investment economics before committing capital.

Market statistics provide context.

An investment decision requires a dedicated assessment of the property, its operating performance and the structure of the proposed transaction.

Our integrated advisory approach supports hotel owners, investors, real estate companies and hospitality operators in evaluating the economic and strategic implications of material investment decisions.

Areas of advisory support

Hotel acquisition analysis

Assessing the relationship between acquisition price, sustainable cash flow, capital expenditure and investment risk.

Financial and strategic hotel valuation

Examining operating results, normalised profitability, financial sustainability and the key drivers of enterprise and asset value.

Feasibility studies and business planning

Evaluating acquisitions, redevelopment projects, extensions, conversions and hotel repositioning opportunities.

Capital expenditure and value-creation analysis

Determining whether proposed investments are likely to generate economic returns consistent with the capital committed.

Operating model assessment

Comparing independent management, leasing, franchising and hotel management agreements, with particular attention to costs, contractual obligations and owner returns.

Strategic review of hotel assets

Assessing potential value-enhancement strategies, operational weaknesses, disposal alternatives and the conditions required to improve investment outcomes.

Request an initial discussion

For an initial assessment of your hotel investment or strategic project, contact:

info@investimentialberghieri.it

To help us understand the proposed assignment, please provide, where available:

The property's location and approximate number of rooms.
The nature of the transaction: acquisition, disposal, refurbishment, management or refinancing.
The main financial or strategic objective you wish to assess.

Confidential documentation is not required in the initial enquiry.

Following a preliminary discussion, the appropriate scope of professional analysis can be defined.

Before committing capital, establish whether the investment can generate the return required to justify its risks.

Our hospitality advisory ecosystem

InvestimentiAlberghieri.it — Hotel investment research, transaction market analysis and hospitality capital trends.

Investhotel.it — Strategic advisory for hotel investments and asset value enhancement.

RobertoNecci.it — Corporate advisory, governance, financial analysis and hospitality business valuation.

HotelManagementGroup.it — Hotel management, operational performance and business improvement.

Sources and methodology

This article draws on the following research publications:

HVS – 2025 European Hotel Transactions, 23 March 2026.
HVS – H1 2026 European Hotel Transactions, 20 August 2026.
HVS – 2026 European Hotel Valuation Index, 16 March 2026.
HVS – H1 2025 European Hotel Transactions, 29 September 2025.
Roberto Necci – Marriott Operates 1.8 Million Rooms but Owns Almost No Hotels: Who Really Makes the Money?, 1 November 2026.

Methodological considerations

HVS transaction statistics cover hotel transactions exceeding €7.5 million. They do not represent the entire hotel property market.

The European Hotel Valuation Index is a model-based measure covering representative hotel properties in 31 European cities. Changes in the index are not directly equivalent to movements in the average price per room achieved in completed transactions.

A discrepancy exists between the first-half 2025 transaction volume reported in the full-year 2025 publication (€11.4 billion) and the amount reported in the dedicated first-half study (€10.4 billion). The reported 10% decline for the first half of 2026 is therefore presented using the comparison published in the relevant HVS half-year report.

All financial scenarios, direct capitalisation examples and strategic interpretations included in this article are independent illustrative analyses. They do not constitute certified valuations, actual transaction results or personalised investment recommendations.

FAQ

How much was invested in European hotels in 2025?

According to HVS, European hotel transaction volumes reached €22.6 billion in 2025, an increase of 30% compared with 2024.

Why did hotel investment volumes increase while hotel values remained almost unchanged?

Transaction volumes measure capital deployed through completed deals, while underlying asset values depend on expected cash flows, capital costs and investment risk. Greater market activity does not necessarily imply widespread asset appreciation.

How much did European hotel values increase in 2025?

According to the HVS 2026 European Hotel Valuation Index, estimated European hotel values increased by an average of just 0.2% in nominal terms.

What was the average hotel transaction price per room in Italy in 2026?

In the first half of 2026, the HVS sample of Italian hotel transactions exceeding €7.5 million recorded an average price of approximately €310,000 per room. This is not a universal valuation benchmark for Italian hotels.

How should a hotel investment be valued?

A sound hotel investment assessment combines market analysis, normalised profitability, projected cash flow, capital expenditure, financing conditions, contractual obligations and investment risk scenarios.

Does affiliation with an international hotel brand always increase property value?

No. The financial impact depends on incremental revenue, management and franchise fees, system costs, capital investment requirements and the cash flow ultimately available to the property owner.

How can investors request a preliminary hotel investment assessment?

Hotel owners, investors and real estate companies can contact info@investimentialberghieri.it to discuss financial analysis, feasibility studies, hotel valuations and strategic investment assessments.