BERLIN — Hotel transactions could be a bright spot for Europe in 2026.
Andreas Löcher, head of investment management operational real estate for Hamburg-based Union Investment, said there are more hotel deals being done, although his firm is still more active as a seller than a buyer.
"We've been more on the disposal side in recent years, both in Germany, outside of Germany, and in Europe, but also we've been disposing in the U.S., one, probably soon two assets," he said during an interview at the International Hospitality Investment Forum EMEA in Berlin.
Löcher said he hopes to move to being a more active buyer in the market soon, focused on the strong urban markets in southern and western Europe.
"We would probably more look for metropolitan areas in Europe — Paris, Madrid, Barcelona, Vienna, Rome, Milan," he said. "So that's basically the sweet spot."
Union Investment has more than €500 billion in assets under management and looks to acquire hotels across the chain scales but has seen success in recent years with its investments in the economy segment, Löcher said.
"The majority of them are really doing very nicely," he said, adding the company was an early investor in the Motel One brand. "There's always exceptions, but in this field, we're very, very happy. All in all, it depends really on the submarket at the end of the day."
Watch the video above or listen to the podcast version for more from Union Investment's Andreas Löcher.