INVESTMENT ACTIVITY
European resort transactions exceeded €10.4Bn in H2 2024, engaging 486 properties and shut to 64K rooms. General, European transactions reached 22.4Bn in 2024, one of the best quantity since 2019, up 37% from 2023 (12% in the again of 2015-2019 real looking). The UK, Spain and France were perhaps the most provocative resort investment markets, accounting for 59% of European volumes in 2024 with €13.2Bn (+38% vs 2023). Notably, the UK reclaimed its main space in Europe, with €7.8 billion transacted in 2024 (+197% vs 2023). Among the many tip 10 markets, perhaps the most important increases in investments relative to 2023 were in Greece (+294%), Norway (+248%), Eire (+218%) and the UK (+197%).
PRIME YIELDS
The everyday label per room in Europe used to be €201K in 2024, down from €216K in 2023. This decline displays shifts in transaction composition (by class and set aside of living) in preference to a signal of persevered discounting in the resort sector. On the opposite, following decompression in 2023, yields remained typically stable in 2024, with values extra supported by rising earnings and minor compressions for the “simplest of perhaps the most productive” affords in markets with excessive entry barriers. In step with MSCI, cap rates in Europe declined by 3.9bps between Q4 2023 and Q4 2024.
SUPPLY
No matter sturdy hobby in the hospitality sector, new resort building has slowed in most up-to-the-minute years attributable to rising building costs, decreased leverage and increased debt expenses. While changing underutilized space of enterprise areas into inns has gained traction, especially in foremost cities delight in London, Paris, Rome, and Madrid, the tempo of these conversions is predicted to decelerate previous 2025.
PERFORMANCE
In 2024, inns benefited from sturdy performance, with RevPAR surpassing 2023 by 6% (+29% vs 2019). This used to be driven by a 4% develop in ADR and a 1.1 pp. secure in occupancy (-1.9 pp. vs 2019). The Japanese and Southern Europe areas led the RevPAR development (+12% and +7% vs 2023, respectively). Among the many key European markets, Athens, Madrid and Edinburgh noticed one of the best RevPAR increases (>18%).
Borivoj Vokrinek
Strategic Advisory & Head of Hospitality Overview EMEA
Cushman & Wakefield
Scrutinize source
