The hotel real estate sector lacks a degree the degree of transparency that investors in the stock market or bond market are used to. The aim of this research project is to develop the first transaction-based hotel index for the European hotel market and make it available to all market participants. The project increases the transparency within the hotel industry. Based on a sample of 3278 European hotel transactions I develop a hedonic transaction based real estate index for hotels in Europe. The index controls for the impact of exchange rate changes. I document that European hotel prices have largely recovered from the lows of the Global financial crisis. The evidence suggest there is a substantial degree of heterogeneity among different types of real estate sectors.