HVS: Greece and Athens in the top 10 countries and cities with the highest number of hotel deals in 2024

Last year was a turning point for the European hotel investment market, as transaction volumes increased by 62% year-on-year, the highest level recorded since 2019, with Greece and Athens ranking in the Top 10 countries and cities, respectively, in hotel transactions in Europe, according to the latest HVS report.

Buy and sell transactions were fuelled by the easing of interest rates and the abundance of funds from private investors, mainly for large portfolio deals, resulting in a total transaction volume for the year of €17.4 billion, an increase of €6.7 billion compared to 2023 levels.

Hotels across Europe achieved an average price of €29 million, up 5% year-on-year, with the average price per room reaching €215,300, up 9% year-on-year in 2023 and around 5% higher than in 2019.

UK and London are on the top again

The UK came out on top among European countries in terms of total asset activity by volume, accounting for 36% of deals, followed by Spain (15%), France (12%) and Italy and Germany (with a 6% share each).

Greece was placed in seventh place, gathering 4% of transactions, the same share as Ireland, amounting to €639 million, up 15%.

While London, Paris and Madrid topped the list in terms of urban transaction activity, with Athens coming in seventh place in the ranking.

The Greek capital attracted €309 million in transactions, up 24%, attracting around half of the country’s transactions.

“London retained its position as the most transacted city in Europe, with €3 billion in transactions, matching the total of the next five most productive cities. This is largely due to large portfolio transactions, reinforcing London’s status as a key global investment hub,” commented one of the report’s authors and HVS partner Gauthier Champlong.

Private equity investors grew rapidly

Private equity investors proved to be the most active type of investor in 2024, buying and selling assets worth almost €8.6 billion – an increase of more than 300% compared to 2023, followed by owner-managers who carried out transactions worth €7.8 billion, up 90% compared to the previous year.

Individual asset transaction volumes reached €10.5 billion, thanks to interest rate cuts across European central banks and strong hotel transactions, which fuelled investment sentiment.

Paris was the 2024 city market with the highest liquidity in individual assets, with the Olympics triggering much of the €1.4 billion of activity. Some of the biggest deals in the French capital involved the Mandarin Oriental, Pullman Tour Eiffel and Hilton Opera.

London ranked second in terms of the volume of individual asset transactions, with deals reaching €1 billion, followed by Madrid, Venice and Athens. Notable deals in London involved Six Senses in Bayswater and The Standard in King’s Cross.

The volume of portfolio transactions amounted to EUR 6.8 billion in 2024, up significantly from 2023 levels. Around half of the portfolio transactions took place in secondary cities, notably in Spain, France, Germany and Belgium. London recorded the highest volume of portfolio transactions with €1.9 billion, followed by Amsterdam with €240 million.

“As we move towards 2025, the availability and cost of finance will remain a focus for hotel investors. With interest rates expected to fall further, capital markets are likely to experience a resurgence in liquidity, further boosting trading volumes across key European markets,” said one of the report’s authors and deputy managing director at HVS, Matthias Hecht

He added: “While refinancing challenges persist, banks and alternative lenders have shown greater flexibility in restructuring debt and hotels continue to outperform in investor preference over other property classes.”

Source:
money-tourism.gr
https://money-tourism.gr/en/hvs-greece-and-athens-in-the-top-10-countries-and-cities-with-the-highest-number-of-hotel-deals-in-2024/