Following a record-breaking 2024, 2025 marked a period of recalibration across UK and European hotel markets.  

In the UK, deal volumes are expected to reach £4.3 billion (based on preliminary figures, excluding development sites). This marked slowdown has been driven by a shift from large-scale M&A to single-asset transactions. Domestic investors dominated as cross-border capital softened amid geopolitical uncertainty, while private capital and HNWIs grew more active. Operational headwinds, including rising labour costs and margin pressure, led to GOPPAR declines and increased insolvencies, though improved financing conditions and quality stock supported liquidity.  

France delivered an estimated €3 billion in transactions, buoyed by strong demand in Paris, Nice, Lyon, and prime leisure destinations. Institutional investors remained cautious, while operators, family offices, and private equity firms drove activity. Political instability and rising bond rates tempered confidence, yet inflation stabilised at 2%. Christie & Co achieved a record year in France, completing 57 deals including landmark sales in Paris and Chamonix. 

Spain continued its dynamic trajectory, surpassing €3.5 billion in investment for the fourth consecutive year. Robust tourism demand, easing interest rates, and a strong development pipeline dominated by four- and five-star projects underpins positive momentum into 2026. 

Germany saw a dramatic rebound, with investment volumes up over 78% year-on-year. Berlin and Munich led activity, supported by renewed international interest and value-add strategies amid constrained new supply. Austria also strengthened, with several landmark transactions in Vienna including the Vienna Marriott Hotel and The Ritz-Carlton together accounting for over €200 million. 

Looking ahead, we anticipate continued growth in trading performance throughout 2026, albeit with divergence across individual markets.