Athens emerges as one of the major protagonists of the European hotel market in 2025. Over the past year, the values of hotel properties in the Greek capital increased by 5.5%, placing Athens in second place in Europe, behind only Copenhagen. Strong demand, the steady rise in average revenue per room (RevPAR), and growing interest from institutional investors continue to support the city’s positive momentum, according to an HVS study on hotel value trends.
At the European level, 2025 was characterized by overall stabilized hotel property values, with only a marginal increase of 0.2%. However, there were significant differences among individual markets, notes HVS, highlighting that Copenhagen, Athens, Bucharest, and Madrid experienced strong growth, mainly due to high demand and limited new supply. In contrast, markets such as Istanbul, Amsterdam, and Frankfurt faced challenges related to political and economic uncertainty, increased operating costs, or the entry of new hotel units into the market.
The United Kingdom remained the most liquid market in Europe, representing 25% of total transactions.
It should be noted, however, that from 2022 to 2024, the growth rate of Athens hotel values was double-digit (11.6%, 11.2%, and 11.8%, respectively), placing the Greek capital at the top of the relevant ranking.
Frenzy of deals in the European hotel market
At the European investment level, in 2025 there were 175 more hotel transactions compared to 2024, with the total value reaching €22.6 billion, marking a 30% annual increase.
Despite this significant rise, the transaction volume remained approximately 17% lower than 2019 levels. Transactions involving individual hotel units increased dramatically by 68%, reaching €15.6 billion.
Among the most significant deals were the sale of Mare Nostrum Resort in Tenerife, W London, the transfer of remaining shares of Four Seasons Astir Palace in Athens, as well as the sale of Pullman Montparnasse in Paris and Caesar Augustus in Capri. Significant portfolio transactions also took place, with the largest involving the acquisition of Dalata Hotel Group by Pandox AB and Eiendomsspar AS for €1.4 billion.
What is happening in Europe
At the market level, the United Kingdom remained the most liquid market in Europe, representing 25% of total transactions, despite a 10% decline compared to 2024. It was followed by France with 16% and Spain with 14%. Meanwhile, London retained its position as the most active hotel investment market, with transactions totaling approximately €2.3 billion, while Paris ranked second. Despite challenges, HVS notes that prospects for 2026 remain cautiously positive.
Europe continues to be one of the world’s most attractive tourist destinations, while strong demand and limited development of new units create favorable conditions for the sector. However, geopolitical uncertainty, potential increases in energy costs, and inflationary pressures are factors that will continue to affect market trends. In this changing environment, flexibility, innovation, and adaptability will be key elements of success for the hospitality industry in Europe.
