Germany, Spain, Norway, and Austria Drive Hospitality Investment Boom as Brookfield’s Over Seven Hundred Fifty Million Euro Generator Hostel Deal sets the Pace for European Hotel Market Growth

Wednesday, May 21, 2025

Germany, Spain, Norway, and Austria are fueling a powerful resurgence in hospitality investment across Europe, propelled by a surge of strategic hotel acquisitions that reflect growing investor confidence in the region’s tourism recovery. At the forefront is Brookfield’s €776 million acquisition of the Generator Hostel platform, a landmark deal that underscores the shift toward lifestyle-focused, experience-driven lodging across major European cities. This momentum is echoed in recent high-value transactions in luxury, midscale, and resort segments across key markets—from urban hubs in Germany and beachfront properties in Spain to scenic leisure destinations in Norway and Austria—solidifying Europe’s position as a top-tier hospitality investment hotspot in 2025.

The European hotel sector is experiencing a dynamic investment cycle in early 2025, driven by a wave of high-profile acquisitions across key markets. Leading the surge is Brookfield Asset Management’s €776 million acquisition of Generator Hostels, which sets the tone for renewed confidence in lifestyle and budget hospitality platforms. Meanwhile, notable transactions in Germany, Spain, Norway, and Austria are reinforcing the appeal of well-located assets in urban and leisure-centric destinations.

Brookfield Secures €776 Million Deal to Take Over Generator Hostels and Expand Its European Hospitality Footprint

Representing a milestone in the European hostel market, Brookfield Asset Management has finalized a transformative €776 million deal to acquire the operational portfolio of Generator Hostels across key cities in Europe. The acquisition includes 15 properties totaling 2,749 rooms across 10 major European cities, including London, Paris, Rome, Berlin, and Madrid.

This strategic acquisition positions Brookfield to expand further into the budget lifestyle accommodation segment, with plans to grow the Generator brand via additional acquisitions and third-party management agreements. The deal reflects Brookfield’s strategy to tap into the growing demand for cost-efficient, experience-driven lodging options among younger travelers.

The platform has seen significant growth since its initial expansion in 2017. From a starting base of 12 properties and 1,894 rooms, the portfolio was expanded under previous ownership. While the European assets now belong to Brookfield, previous ownership retains four U.S.-based properties added during a 2019 acquisition.

This deal highlights a growing shift among institutional investors toward lifestyle hospitality brands that resonate with younger travelers, especially in major European urban centers favored by Millennials and Gen Z.

High-Profile Transactions Continue Across Northern and Central Europe

Beyond the Generator acquisition, several other strategic property transactions have recently closed across Europe, signaling robust activity in the hospitality investment market.

Historic Hotel in Norway Changes Hands for €43 Million

A prominent four-star coastal property in Larkollen, Norway, has been acquired by a group of private investors in a deal valued at approximately €43 million. The hotel, located an hour south of Oslo along the Outer Oslofjord, features 91 rooms, three restaurants, three bars, and ten meeting rooms. The acquisition price, averaging €473,000 per room, underscores the premium placed on high-quality leisure-oriented assets in scenic locations.

This acquisition comes amid growing interest in Nordic hospitality assets, particularly those positioned near major metropolitan areas but offering a retreat-like atmosphere. The investment aligns with the broader trend of targeting well-established resorts and conference-capable hotels in Northern Europe.

Épargne Pierre Europe Secures Campanile Duisburg City Hotel in Germany

Épargne Pierre Europe, a French real estate investment fund, has acquired the Campanile Duisburg City hotel in Germany for €14.5 million. The 169-room, three-star property is situated in the heart of Duisburg’s old town and opened in 2020. With a bar on site and a lease agreement with the Louvre Hôtel Group lasting 15 years, extendable for another five years, the asset offers long-term operational stability.

This acquisition demonstrates sustained investor interest in secondary German cities that offer strong transport connectivity and sizable urban populations. Duisburg, home to approximately 500,000 residents, is located just 30 kilometers from Düsseldorf, one of Germany’s economic hubs.

The property’s recent construction and central location make it an attractive asset in the midscale segment, appealing to both business travelers and tourists visiting the North Rhine-Westphalia region.

Avila Group Secures Iconic Five-Star Property in Wiesbaden as Part of Germany Luxury Hotel Expansion

A prominent German property firm has completed the acquisition of the renowned five-star Hotel Nassauer Hof, strategically positioned in central Wiesbaden. Located across from the city’s casino and state theatre and within easy reach of Frankfurt Airport, the hotel is a flagship asset in the regional luxury hospitality market.

The hotel features 159 rooms, three restaurants, two bars, and nine conference rooms. Following the acquisition, the new ownership plans to undertake a comprehensive renovation. As part of this redevelopment strategy, the total room count will be reduced from 159 to 104 to accommodate more spacious layouts and upgraded features. Additionally, serviced apartments will be added to diversify the property’s offerings.

This move reflects a growing trend of repositioning historic luxury hotels through extensive renovations that blend heritage with modern amenities, catering to discerning leisure and business travelers.

Azora Expands Its Spanish Portfolio with Acquisition in Menorca

Spanish real estate investment manager Azora has added another key asset to its growing hospitality portfolio with the acquisition of the Ferrer Skyline aparthotel in Menorca. Positioned along the coastline in Ciutadella de Menorca, a major urban center on the island, this upscale four-star property offers 163 rooms with direct beach access. The aparthotel features two swimming pools and a poolside bar, targeting both leisure travelers and extended-stay guests.

This deal follows Azora’s June 2024 acquisitions in Brussels, where the firm added two boutique properties totaling 99 rooms. With this latest acquisition, Azora’s total portfolio now spans 46 hotels comprising 11,600 rooms across Europe and the U.S.

The Menorca acquisition underscores Azora’s strategy of targeting leisure-centric destinations with strong seasonal demand and growth potential, particularly in coastal Spain and resort islands.

Dormero Hotels Expands Austrian Presence with MyTirol Acquisition

Germany-based Dormero Hotels has acquired the MyTirol Hotel, a ski resort located at the base of the Zugspitze mountain in Austria’s Tyrol region. The three-star, 83-room property has now been rebranded as Dormero BeHo Zugspitze.

Facilities at the hotel include a swimming pool, in-house cinema, and meeting room, making it a versatile destination for both vacationers and group bookings. This transaction marks Dormero’s third hotel in Austria and brings its total portfolio to 56 properties.

The acquisition highlights growing investor interest in alpine hospitality assets, especially those with strong branding potential and access to both winter and summer outdoor tourism markets.

A Broader Outlook: Hotel Investment Outlook Brightens Across Europe

A wave of hotel property deals across Europe in early 2025 highlights a powerful resurgence in investor activity and renewed confidence in the region’s hospitality sector. Capital is flowing into both luxury and midscale properties, as well as alternative accommodation formats such as aparthotels and hostels. Several key trends are driving this renewed investment focus:

Diversification Across Segments: From luxury icons in Wiesbaden to hostels in Berlin and aparthotels in Menorca, investors are embracing a wide range of hospitality assets to balance risk and return.Appeal of Gateway and Secondary Cities: Cities like Madrid, Paris, and Rome remain top targets, but increasing attention is being paid to regional markets such as Duisburg, Larkollen, and Ciutadella.Focus on Renovation and Value-Add Opportunities: Several buyers plan to reposition acquired properties through major renovations, tapping into rising demand for upgraded accommodations and flexible lodging formats.Operational Stability Through Leases: Long-term lease structures, such as the 15-year agreement in Duisburg, continue to be attractive to institutional investors seeking predictable income streams.Strategic Hospitality Deals Redefine the European Hotel Investment Landscape

Brookfield’s acquisition of Generator Hostels represents more than a standalone investment—it marks a pivotal shift in how institutional capital is approaching the European hospitality sector in 2025. Alongside other high-value transactions in Germany, Norway, Spain, and Austria, the continent is seeing renewed investor enthusiasm for hotel and hostel platforms, lifestyle lodging, and coastal or alpine leisure properties.

Germany, Spain, Norway, and Austria are spearheading a wave of hospitality investments in Europe, driven by Brookfield’s €776 million acquisition of Generator Hostels. This landmark deal signals rising confidence in the region’s tourism recovery and is setting the tone for accelerated hotel market growth across the continent.

From repositioning historic luxury hotels to expanding ski and sun-focused resort holdings, hospitality investors are embracing diverse strategies to capture long-term value. As global travel demand continues to rebound and cross-border movement increases, the outlook for hotel real estate in Europe remains optimistic, with more strategic acquisitions likely to follow in the coming months.