European hotel investment is holding up despite pressure on financing costs, and the standout shift is a renewed appetite for large-volume deals, according to Cushman & Wakefield's latest market reading for Germany and the wider region.

The advisory firm's report, titled "The European hotel investment market remains resilient – interest in large-volume deals increases," signals that capital is moving back up the risk curve after a period dominated by smaller, single-asset and defensive transactions.

What does the shift toward large volumes mean for sellers?

For hotel owners and operators, the return of big-ticket buyers matters directly for exit strategy. Large-volume deals — portfolio sales and trophy assets — typically set the pricing benchmarks that ripple down to valuations across a market. When institutional buyers re-engage at scale, sellers gain leverage, and bidding for stabilized assets tightens.

The resilience Cushman & Wakefield describes also carries implications for brand and platform strategy. Cross-border capital chasing portfolios tends to favor assets already tied to strong distribution: franchise agreements, branded management contracts and reliable third-party operator relationships. Assets with weaker distribution economics face a thinner buyer pool even in a recovering market.

Germany anchors the European picture

The report is published through the firm's German operation, underscoring Germany's role as one of Europe's deepest hotel investment markets. Institutional investors have historically used German portfolios as the entry point for broader European exposure, and large-volume activity there tends to lead the cycle across the continent's other major markets.

For travel sellers, the transaction data is a leading indicator. Ownership changes at scale often precede brand conversions, renovation programs and repositioning — each of which alters room supply, rate positioning and ultimately commissionable inventory in key corporate and leisure destinations.

A market testing rates, not retreating

Cushman & Wakefield's framing — resilience paired with rising interest in large deals — points to a market that is repricing rather than contracting. Investors are engaging with hospitality assets again, but under stricter yield requirements, which keeps pressure on sellers to demonstrate operational performance, not just location stories.

The report does not position the recovery as complete. Its language on "increasing interest" in large volumes describes momentum in buyer appetite, and market participants will need to watch whether that interest converts into completed transactions at volume in the coming quarters.

If the trend holds, 2025 could mark the point at which European hotel investment moves decisively back toward portfolio-scale dealmaking, resetting valuation benchmarks for the sector's next financing and refinancing cycle.