The European hotel market is thriving. It attracts investors ready to spend hundreds of millions of euros on large properties and complexes. In 2026, the number of major transactions and interest in the most expensive complexes on the market increased. What does this mean? There is particular interest in ultra-luxury properties, which investors are competing for.
Investing in hotels: transactions worth hundreds of millions of euros in the most beautiful locations in Europe
In the first half of 2026, the value of European hotel transactions amounted to approximately 11.7 billion euros. This is according to data from Cushman & Wakefield. This was 9.5 percent less than the previous year, but 19.5 percent above the ten-year average for the first half of the year. However, the number of transactions exceeding 100 million euros increased by 30 percent year-on-year. Investors are therefore buying slightly less, but each purchase generates significant excitement.
One of the major transactions announced in 2026 was the acquisition of the London hotel The Westminster by RIU Hotels & Resorts. The price amounted to 290 million pounds, or approximately 334 million euros. The property previously operated under the Curio Collection by Hilton brand. After the takeover, it is called Hotel Riu Plaza London The Westminster.
The ultraprestigious transaction market also grew last year. Spring Hotels Group purchased the Mare Nostrum Resort complex in Tenerife from Brookfield for around 430 million euros. The complex includes three hotels: Mediterranean Palace, Cleopatra, and Sir Anthony. Beautiful locations and properties.
Spain: high amounts also in sales offers
Things are happening in Barcelona as well. In October 2026, the Radisson Blu 1882 Hotel, Barcelona Sagrada Familia appeared on the market for around 90 million euros. The owner is Union Investment. It’s a beautiful property with 182 rooms.
In March 2026, “Cinco Días” also reported the sale of the Grand Hyatt Barcelona, for around 280–300 million euros. Its owners, AXA and Blasson, purchased the property in 2023 for 180 million euros. The transaction clearly demonstrates the increase in market value of ultra-luxury hotels and highlights the potential of the market.
Investor map – where the money comes from
Among the buyers, companies investing in real estate and hotel owner-operators are active. However, not all investor groups increased their involvement. During this period, private equity funds were the largest net sellers.
Capital from the Middle East is also present on the market, although in the HVS report for the first half of 2026, European buyers clearly dominated, accounting for 91 percent of the total transaction value.
Which locations on the map are attracting investors in 2026?
Barcelona and London generate the most interest. They are followed by Madrid, while Paris and Milan shared fourth place.
The attractiveness of such locations is linked, among other things, to the growing number of tourists and the increasing interest in accommodation as an experience, as well as the limited number of new properties. Cushman & Wakefield points to the small number of new hotel projects in cities such as Barcelona, Paris, and Prague. This is mainly because cities are increasingly reluctant to approve new investments, and prestigious locations in city centers are simply already occupied.
Prestigious hotels and locations attract capital
Investors are attracted to hotels by growing tourism and the potential to increase property value. CBRE points out that there are few new properties in the best locations. That’s why over 90 percent of surveyed investors plan to make purchases in 2026.
There are also concrete results: according to Cushman & Wakefield, European RevPAR, or revenue per available room, increased by 3 percent year-on-year in the first half of 2026. However, this does not mean that profits are growing at the same pace. Owners are still facing high operating and financing costs. Nevertheless, the hotel real estate market is thriving. And unique opportunities are emerging on the market, which disappear quickly.
