European Hotel Investment Defied 2025’s Uncertainty. The Next Test Is Already Here.
Photo Credit: The Holiday Inn London – Kensington High Street was sold in December 2025. IHG
Skift Take
Europe's hotel investment market had a strong year, with Northern Europe and upscale properties winning big. But fresh geopolitical uncertainty means the good times may already be under pressure.
European hotel investment shrugged off uncertainty in 2025, with deal flow holding firm across all four quarters despite a challenging global backdrop.
The market posted over €14.6 billion (about $17.1 billion) in transactions across 267 deals in 2025, according to a report from Global Asset Solutions, an independent advisory firm with a portfolio of over $20 billion in assets managed in Europe, Asia, and the Middle East.
Capital deployment stayed above €3.4 billion (about $4 billion) every quarter, a pattern that reflects structural demand rather than opportunistic surges.
The firm's CIO, Robert Walters, told Skift the mood for 2026 is “optimism mixed with a good dose of realism.”
This is a welcome change from 2025's uncertain start. A year ago, tariffs and stock market volatility had cast a shadow over what had been a strong post-pandemic recovery. As it turned out, the mar
