Hospitality industry faces geopolitical headwinds with confidence
Despite global tensions, travel demand and investor interest keep Europe’s hospitality market on a steady growth path
Despite current geopolitical tensions affecting international travel, hotel industry experts at the International Hospitality Investment Forum EMEA remain optimistic. They emphasize that travelers’ strong desire to explore the world continues to drive demand, offering opportunities for growth in regions like Europe, the Middle East, and Africa, even as global disruptions persist.
Key takeaways
- Resilient travel demand: Travelers’ appetite for international experiences remains strong, especially post-pandemic, offering opportunities for hotels in EMEA as some travelers avoid the U.S.
- Investor confidence: Hotels are now seen as mainstream, resilient investments, with rising interest in European hotel transactions—€4 billion in Q1 2025 alone.
- Deal flow cautiously rising: While investor interest is high, many are proceeding carefully. A wave of non-core asset sales is expected once transactions pick up.
- Business & leisure recovery: Leisure travel is robust, and business travel saw a positive rebound in 2024, with further growth expected in 2025.
- Return of Chinese travelers: Anticipation grows around Chinese outbound travel, with Europe more likely than the U.S. to benefit from this segment.
- Hospitality as a unifier: Speakers emphasized the hotel industry’s unique role in promoting global understanding and connection, highlighting travel as a shared human privilege.
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