Diverse hospitality opportunities across Europe, Middle East and Africa (EMEA) will continue to attract US investors, operators and travellers in 2026, according to expert views.
While US private equity groups have shown significant interest in European markets in the last couple of years, investment this year is likely to arrive from a range of capital sources.
“Europe looks attractive, especially since the US hospitality market is experiencing a few more challenges at the moment, which may make transacting in Europe more enticing,” says Alex Robinson, director, STR.
Looking at the kinds of deals that might happen, Robinson notes that a significant number of European portfolios that were brought to market last year didn’t trade, opening up opportunities in 2026. “A number of investors have also been waiting for distress to arise in Europe,” he adds, “for which we now see the insolvency of Revo in Germany.” According to the Charlottenburg District Court, which is managing the administration process of the white label operator, around 125 hotels in Germany and Austria are affected.
Other key markets will require investors to read the small print, he adds, pointing out that some southern European territories, such as Italy and Greece, aren’t as “liquid” as investors would like, particularly where hotels are held by families, or transparency is lacking. In the Netherlands, regulatory changes such as VAT rises are cutting into operational profits, “all of which is likely to have a downward pressure on pricing” in key markets, he says. However, these kinds of opportunities may well attract “institutional investors with patient capital”, he says.
Investor appeal
“Our conviction in European hospitality is rooted in a combination of structural demand drivers and disciplined entry points,” says Lauren Okada Young, managing director in the real estate group of investor Brookfield.
“First, Europe remains one of the most globally diversified and supply-constrained lodging markets in the world. Many of the key gateway cities face meaningful barriers to new development, whether planning, land constraints or construction costs. That creates long-term pricing power for well-located assets,” she adds.
She also notes that travel demand has proven more resilient than many expected. “What we are seeing in 2026 is not just a rebound story – it’s a structural shift in spending priorities. Experiences continue to take share from goods, and intra-European travel remains robust. Europe also benefits from diversified demand drivers: leisure, corporate, events, education and group travel.”
Thirdly, Brookfield believes that markets are in “the early stages of a new real estate cycle”. She notes: “Capital market dislocation over the past two years has created opportunities to acquire high-quality assets or platforms at attractive bases relative to replacement cost. As liquidity returns and price discovery improves, high-quality hospitality platforms with strong brands and operational upside are particularly well positioned.”
Generator deal
Last year, Brookfield acquired Generator Hostels' European portfolio for €776 million. Okada Young explains the rationale: “We see the lifestyle and hostel segment as part of a broader spectrum of experience-led accommodation. Our focus is on institutionalising and scaling strong brands, partnering closely with management teams and driving value operationally.”
She says that the Generator model is compelling for a few reasons, including the fact that it “monetises space efficiently through the sale of individual beds” and has proven appeal to a broad demographic, while its F&B offerings and vibrant social spaces enhance total revenue per guest.
She notes: “We also see clear white space across Europe for additional sites, particularly in high-compression cities where ADRs are strong but travellers remain value conscious. Conversion opportunities – repositioning existing hotels into hostel formats – are particularly interesting given today’s pricing environment.”
In terms of scoping out further deals, she adds: “Our focus tends to be on prime locations with multiple demand drivers and on formats such as experiential and lifestyle hospitality, which benefit from more consistent revenue streams and a diversified customer base.
“Cost control and operational excellence are critical – particularly in a higher-rate environment where value creation requires on the ground expertise and a long-term mindset to support businesses as they transform and adapt to what customers want in today’s environment.”
EMEA opportunities
A slate of major US operators, meanwhile, is examining opportunities right across the EMEA region. Says Simon Vincent, EVP & President, EMEA, Hilton: “Across Europe, the Middle East and Africa our continued confidence is driven by resilient demand and the breadth of opportunity within this dynamic region – from established gateways to fast-emerging destinations.”
He adds: “Customer insights are clear: travellers want more distinctive, experience-led stays as well as greater value and flexibility, which is why we are partnering with owners to accelerate luxury and lifestyle growth as well as scaling high-quality conversions in many European markets.” Vincent notes that in the Middle East, long-term tourism investment – particularly in Saudi Arabia and United Arab Emirates – is adding new demand drivers. “We have also seen sustained momentum in Türkiye, now our sixth largest operating market globally. With more than 1,600 hotels and a quarter million rooms trading or in the pipeline across 98 countries, the EMEA region remains a key engine of long-term growth for Hilton,” he says.
Adds Carlos Khneisser, chief development officer, Middle East & Africa, Hilton: “Africa remains one of Hilton’s most dynamic long‑term growth regions, supported by accelerating investment, rising intra‑regional travel, and a rapidly growing middle class. As we work toward tripling our footprint to more than 180 hotels across 12 brands, our focus is on building a high‑quality, diversified pipeline anchored by Hilton’s legacy of more than a century of hospitality excellence.”
Selective capital
Looking more broadly at hospitality’s appeal, Okada Young adds: “Capital today is highly selective. It is flowing toward sectors with structural demand, supply constraints and clear operational upside. In hospitality, that increasingly means differentiated platforms with strong brands and scalable models.”
She notes that “deals are also more operationally driven than they were in the last cycle”, adding: “With financing markets reopening but still disciplined, investors are underwriting business plans, and prefer situations with operational upside, not just yield compression.
“Clarity of strategy is also critical. In a more fragmented capital environment, sellers gravitate toward buyers who know exactly what they’re looking for.”
She concludes: “My key takeaways are as follows: focus on quality and be clear about how you plan to create value. In this environment, conviction, access to capital and the ability to execute a business plan will differentiate investors.”