Creative dealmaking will define the European hotel investment market over the next two to three years, as investment volumes rebounded to €23.6 billion ($27.3 billion) in 2025 (up 4.8 percent year over year), according to Savills.
According to the report, improved liquidity, more aligned pricing expectations and resilient RevPAR performance (up 5.4 percent versus 2019, inflation adjusted) are supporting renewed investor confidence. The report highlights growing appetite for value-add strategies and expects capital constraints to drive more merger and acquisition activity, structured transactions and partnership-led deals in what Savills describes as an opportunity-rich phase for the sector.
Savills predicts a number of themes will shape the sector over the next two to three years including operational performance, which is emerging as the defining driver of returns, with limited yield-to-debt spreads placing greater emphasis on operational excellence and the ability
