European Hotel Transactions Were Improving. That's Now in Jeopardy

Key Points

• The European upscale and luxury hotel market saw significant growth in 2024, with transaction volumes reaching €10.95 billion.
• New tariffs and stock market volatility are creating uncertainty and potential challenges for continued market growth.
• Key concerns include economic slowdown, increased tariffs, and potential downward pressure on asset valuations.

Summary

In 2024, the European upscale and luxury hotel market experienced strong growth, with total transaction volumes reaching €10.95 billion. However, the sector now faces uncertainty due to new tariffs and stock market volatility, which could impact future performance. Key concerns for the market include fears of economic slowdown, the impact of tariffs on development costs, and potential fluctuations in asset valuations.