Solid Growth in Key Markets
Volumes in the hotel segment were lower in Q1 though the sector remains popular overall.
Hotel investment accounted for 11.4% of commercial real estate investment in Q1 2026 (in rolling year), a much larger share than seen in previous years.
Hotel investment is now at a historically high market share, as investors are looking for ways to diversify portfolios with assets from a clearly growing business sector.
Growth in the Upscale and Luxury Segment in Most Countries
At country level, RevPAR growth remained uneven across Europe, with strong results in Central and Southern Europe. Germany is recording mixed performance across the country.
Occupancy rates (62% in Q1 2026) increased slightly each year in Europe reflecting a moderate growth of nights spent at tourist accommodations (+1.7% in 2025). International tourists accounted for over 50% of total demand.
RevPAR Growth Remains Uneven Across Europe
After months of recovery, the European hotel market is stabilizing. European RevPAR increased by 3.4% in March 2026 (year-to-date vs March 2025), whilst occupancy rate rose by just 1.9%. This performance mainly reflects booking done before the Middle-East crisis, particularly in the upscale and luxury segment.
The oil crisis and its impact on the economy may adversely affect hotel activity in the forthcoming months.