Home Insights Real estate European Hotel Sector: 2024 Outlook

The European hotel market rebounded strongly after the COVID-19 pandemic (explore past performance in detail in our first paper in this series). By the end of 2023, in most European markets, performance had surpassed pre- pandemic levels when measured by revenue per available room (RevPAR) due to more prioritisation of travel, pent-up demand, and unique opportunities within Europe for both domestic and foreign travellers. Strong performance is expected to continue, and the European hotel market is forecast to grow at a compound annual rate of 15 per cent between 2022 and 2027—reaching EUR 44 billion in 2027.1

Key takeways

  • Lodging demand is expected to grow faster than supply.

  • Hotel performance should remain strong, though average daily rate (ADR) may level off.

  • Inflation and interest rates will likely ease, though distressed properties—and discounted pricing opportunities— will potentially increase.

  • As a result, we expect to see higher transaction volumes in 2024 and a moderate drop in valuations and pricing.

  • We see a strong window of opportunity for those with a clear strategy and skill set to unlock value in the hotel sector.

1Mobility Foresights: Market Research Report—Hotel Industry in Europe 2022-2027, November 2022.

Download the European Hotel Sector 2024 Outlook for more insights. 

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MM13847 | 01/2024 | 3300522-062025

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