читайте также
Christmas Travel to Europe Disrupted by EES
Airbnb market in Tokyo: foreign traffic, strict regulations and seasonal fluctuations
Tourism Crisis in the United States: Stricter Entry Rules and Rising Costs Have Crashed Visitor Numbers in California, Florida and Las Vegas
South Africa’s tourism boom: double-digit growth reshapes the industry in 2025
Eurozone Wage Growth Slows, ECB Reports
UK Taxes Set to Rise for Airports and Energy
Вusiness / Real Estate / Investments / Tourism & hospitality / Analytics / Research / Spain / Italy / United Kingdom / France / Germany / Portugal / Ireland / Greece / Sweden / Denmark / Switzerland / Georgia 08.12.2025
Hotels Enter Europe’s Top Investment Priorities: CBRE Report
center]
[/center]
The European hotel real estate market is attracting growing investor attention, as highlighted in the CBRE study. More than 90% of industry experts who participated in the survey plan to maintain or increase their allocations to this segment. The main motivations are the competitive returns, which outperform other asset classes, and the strong potential of hotel assets.
Total investment volume in the hotel sector reached €20 billion in 2024 — up 37% compared to 2023. The United Kingdom led the market, accounting for 32% of all transactions. Spain ranked second with a 16% share. France (14%) and Italy (11%) also demonstrated significant results. Germany accounted for 7%, Ireland for 4%, and Portugal for 3%.
Around 28% of participants in the European Hotel Investor Intentions Survey 2025 manage assets under $250 million, while 21% control portfolios exceeding $5 billion. Respondents include hotel owners and owner-operators, developers, representatives of real estate funds, family offices, banks, and private investors.
Investment planning structures are shifting. The share of respondents expecting to make a large increase in allocations fell from 42% in 2024 to 26% in 2025. Moderate expansion became dominant — rising from 28% to 39%. This is likely linked to investors having already increased their hotel exposure significantly in 2024. Nevertheless, overall appetite remains strong: over 60% of respondents intend to expand their hotel investment allocations.
29% reported improved expectations for total returns, and 20% cited price adjustments as an important factor. A further 17% consider hotels more attractive in terms of profitability compared with other real estate segments. The anticipated decline in the cost of borrowing, noted by 15% of respondents, is making transactions more accessible and predictable.
In 2024, value-add strategies—focused on repositioning, refurbishment, and operational improvement—were considered by 51% of investors; in 2025 this share rose to 66%. Interest in opportunistic strategies declined from 24% to 15%. Conservative strategies (core) show a modest increase from 11% to 14%.
Central business districts and major urban hubs remain the most preferred locations for investment: chosen by 57% of respondents in 2024 and 65% in 2025. Resort destinations continue to hold strong interest—66% in 2025, though down from 80% last year. Secondary municipalities strengthened their position, rising from 5% to 12%.
Against the backdrop of rising interest in value-add strategies, investors in 2025 prioritise flexible ownership models. The most preferred option remains acquiring hotels without an operator (vacant possession) — selected by 36% of respondents. Hotel Management Agreements remain relevant but less prominent, chosen by 25%.
Second place goes to fixed+variable leases (32%). Long-term fixed leases are far less in demand — 6%. Fully variable leases (full variable leases) remain the least attractive at 1%. Interest in independent hotels has grown to 40%, while demand for soft-branded hotels has decreased. Investors are gravitating either toward fully independent hotels or toward properties affiliated with major global brands.
Upper-upscale hotels and the luxury segment remain the most attractive for investment, with 48% and 40% of respondents ranking them as top priorities. Their strong performance post-pandemic, rapid recovery, consistent demand from high-net-worth travellers, and ability to act as a hedge against inflation support sustained investor interest.
The lower aggregate attractiveness of the luxury segment compared to upper-upscale and upscale categories is likely due to limited availability of luxury assets at acceptable pricing, rather than weakening appetite.
Full-service hotels remain the dominant preference at the service level, although interest decreased slightly (57% vs. 63% last year). Meanwhile, limited-service hotels have gained traction, rising to 22%, reflecting recognition of their leaner cost structures and resilient demand fundamentals. Interest in extended stay is growing, though it remains viewed as underappreciated in Europe. Even more unexpected is the low interest in all-inclusive hotels, despite their strong performance since the pandemic.
Spain remains the most attractive market for hotel investment, holding the top position for the second consecutive year. Italy ranks second, surpassing the UK. Investor interest is supported by market fundamentals and strong forecasted demand combined with limited new supply. Italy accounted for more than 11% of European hotel transaction volume in 2024.
Portugal and the UK share third place. France remains fourth. Greece retains a top-five position thanks to strong tourism trends and expansion of the luxury segment. A notable shift is Norway rising to sixth place. Germany and Ireland rank seventh, with Germany improving year-on-year. Sweden holds eighth place, while Switzerland and Denmark enter the top ten for the first time, ranking ninth and tenth respectively.
London and Madrid maintain leading positions. Rome has risen to third place, overtaking Paris — reflecting increasing interest in Italy’s hotel market and the impact of new international-class hotel openings, which improve both the destination’s attractiveness and market liquidity. Lisbon ranks fourth, Barcelona fifth, Amsterdam moves to sixth place. Berlin and Brussels improve and now share eighth place.
Athens enters the top ten for the first time, also ranking eighth. Investor interest is driven by strong tourism fundamentals, growth in the luxury segment, and steady international demand.
Hotel real estate remains one of the most resilient asset classes in Europe. Strong post-pandemic performance, steady growth in international travel, and limited new supply support the expectation that hotels will face minimal price reductions in 2025. Most respondents do not expect discounts: 55% anticipate deals to close at or above asking prices. The main investment drivers remain supply-demand fundamentals (50%) and relative yield advantages (34%).
If no major geopolitical disruptions occur, CBRE forecasts a 5–10% increase in investment activity in 2025. The outlook is supported by improving market fundamentals, stable tourism demand and ongoing interest from institutional and private investors. Risks remain. Geopolitical uncertainty continues to play a major role. Operational cost pressures are increasing: 35% of respondents cite rising labour costs as a challenge (up from 31%). Concerns about the cost of capital have fallen significantly — from 41% to 16% — reflecting easing monetary conditions. Competition from short-term rentals worries 30% of investors. Renovation costs remain a stable concern: 17% report that upgrade expenses continue to influence investment decisions.
Analysts International Investment note that while the European hotel sector remains highly competitive, it is also shaped by rising regulatory pressure and financial challenges. Against this backdrop, emerging markets offer more flexible entry conditions and stronger return potential. Georgia stands out as one such market, combining sustained growth in international arrivals with rapidly developing resort infrastructure. These factors create a favourable environment for hotel projects and expand the circle of investors viewing the country as an alternative to overheated European markets.
One of the largest hotel projects of an international brand in the region is Wyndham Grand Batumi Gonio, located in Batumi’s resort district. The project delivers returns significantly higher than many European destinations: 10% guaranteed and up to 19% potential. A combination of attractive financial metrics, a prestigious global brand, a reputable management company (Aimbridge Hospitality), and strong tourism growth makes the property one of the most appealing opportunities for investors.
Read more:
Tourism and Hospitality in Southern Europe: Market Dynamics, Investment Trends and Mid-Term Outlook
Hotel Loyalty Programs in 2024–2026: How 675 Million Members Are Reshaping Global Hospitality
Top Tourist Cities of 2025: New Euromonitor Ranking
Global real estate investment: key trends and Colliers’ outlook for 2026
Branded and Independent Hotels: Key Decisions, Risks and Opportunities for Investors in 2025
[/center]The European hotel real estate market is attracting growing investor attention, as highlighted in the CBRE study. More than 90% of industry experts who participated in the survey plan to maintain or increase their allocations to this segment. The main motivations are the competitive returns, which outperform other asset classes, and the strong potential of hotel assets.
Total investment volume in the hotel sector reached €20 billion in 2024 — up 37% compared to 2023. The United Kingdom led the market, accounting for 32% of all transactions. Spain ranked second with a 16% share. France (14%) and Italy (11%) also demonstrated significant results. Germany accounted for 7%, Ireland for 4%, and Portugal for 3%.
Investment Sentiment and Respondent Profile
Around 28% of participants in the European Hotel Investor Intentions Survey 2025 manage assets under $250 million, while 21% control portfolios exceeding $5 billion. Respondents include hotel owners and owner-operators, developers, representatives of real estate funds, family offices, banks, and private investors.
Investment planning structures are shifting. The share of respondents expecting to make a large increase in allocations fell from 42% in 2024 to 26% in 2025. Moderate expansion became dominant — rising from 28% to 39%. This is likely linked to investors having already increased their hotel exposure significantly in 2024. Nevertheless, overall appetite remains strong: over 60% of respondents intend to expand their hotel investment allocations.
29% reported improved expectations for total returns, and 20% cited price adjustments as an important factor. A further 17% consider hotels more attractive in terms of profitability compared with other real estate segments. The anticipated decline in the cost of borrowing, noted by 15% of respondents, is making transactions more accessible and predictable.
Investment Strategies and Approaches
In 2024, value-add strategies—focused on repositioning, refurbishment, and operational improvement—were considered by 51% of investors; in 2025 this share rose to 66%. Interest in opportunistic strategies declined from 24% to 15%. Conservative strategies (core) show a modest increase from 11% to 14%.
Central business districts and major urban hubs remain the most preferred locations for investment: chosen by 57% of respondents in 2024 and 65% in 2025. Resort destinations continue to hold strong interest—66% in 2025, though down from 80% last year. Secondary municipalities strengthened their position, rising from 5% to 12%.
Against the backdrop of rising interest in value-add strategies, investors in 2025 prioritise flexible ownership models. The most preferred option remains acquiring hotels without an operator (vacant possession) — selected by 36% of respondents. Hotel Management Agreements remain relevant but less prominent, chosen by 25%.
Second place goes to fixed+variable leases (32%). Long-term fixed leases are far less in demand — 6%. Fully variable leases (full variable leases) remain the least attractive at 1%. Interest in independent hotels has grown to 40%, while demand for soft-branded hotels has decreased. Investors are gravitating either toward fully independent hotels or toward properties affiliated with major global brands.
Leading the Market: Luxury and Upper-Upscale Hotels
Upper-upscale hotels and the luxury segment remain the most attractive for investment, with 48% and 40% of respondents ranking them as top priorities. Their strong performance post-pandemic, rapid recovery, consistent demand from high-net-worth travellers, and ability to act as a hedge against inflation support sustained investor interest.
The lower aggregate attractiveness of the luxury segment compared to upper-upscale and upscale categories is likely due to limited availability of luxury assets at acceptable pricing, rather than weakening appetite.
Full-service hotels remain the dominant preference at the service level, although interest decreased slightly (57% vs. 63% last year). Meanwhile, limited-service hotels have gained traction, rising to 22%, reflecting recognition of their leaner cost structures and resilient demand fundamentals. Interest in extended stay is growing, though it remains viewed as underappreciated in Europe. Even more unexpected is the low interest in all-inclusive hotels, despite their strong performance since the pandemic.
Most Attractive Countries
Spain remains the most attractive market for hotel investment, holding the top position for the second consecutive year. Italy ranks second, surpassing the UK. Investor interest is supported by market fundamentals and strong forecasted demand combined with limited new supply. Italy accounted for more than 11% of European hotel transaction volume in 2024.
Portugal and the UK share third place. France remains fourth. Greece retains a top-five position thanks to strong tourism trends and expansion of the luxury segment. A notable shift is Norway rising to sixth place. Germany and Ireland rank seventh, with Germany improving year-on-year. Sweden holds eighth place, while Switzerland and Denmark enter the top ten for the first time, ranking ninth and tenth respectively.
Top Cities
London and Madrid maintain leading positions. Rome has risen to third place, overtaking Paris — reflecting increasing interest in Italy’s hotel market and the impact of new international-class hotel openings, which improve both the destination’s attractiveness and market liquidity. Lisbon ranks fourth, Barcelona fifth, Amsterdam moves to sixth place. Berlin and Brussels improve and now share eighth place.
Athens enters the top ten for the first time, also ranking eighth. Investor interest is driven by strong tourism fundamentals, growth in the luxury segment, and steady international demand.
Advantages and Risks
Hotel real estate remains one of the most resilient asset classes in Europe. Strong post-pandemic performance, steady growth in international travel, and limited new supply support the expectation that hotels will face minimal price reductions in 2025. Most respondents do not expect discounts: 55% anticipate deals to close at or above asking prices. The main investment drivers remain supply-demand fundamentals (50%) and relative yield advantages (34%).
If no major geopolitical disruptions occur, CBRE forecasts a 5–10% increase in investment activity in 2025. The outlook is supported by improving market fundamentals, stable tourism demand and ongoing interest from institutional and private investors. Risks remain. Geopolitical uncertainty continues to play a major role. Operational cost pressures are increasing: 35% of respondents cite rising labour costs as a challenge (up from 31%). Concerns about the cost of capital have fallen significantly — from 41% to 16% — reflecting easing monetary conditions. Competition from short-term rentals worries 30% of investors. Renovation costs remain a stable concern: 17% report that upgrade expenses continue to influence investment decisions.
Emerging Markets
Analysts International Investment note that while the European hotel sector remains highly competitive, it is also shaped by rising regulatory pressure and financial challenges. Against this backdrop, emerging markets offer more flexible entry conditions and stronger return potential. Georgia stands out as one such market, combining sustained growth in international arrivals with rapidly developing resort infrastructure. These factors create a favourable environment for hotel projects and expand the circle of investors viewing the country as an alternative to overheated European markets.
One of the largest hotel projects of an international brand in the region is Wyndham Grand Batumi Gonio, located in Batumi’s resort district. The project delivers returns significantly higher than many European destinations: 10% guaranteed and up to 19% potential. A combination of attractive financial metrics, a prestigious global brand, a reputable management company (Aimbridge Hospitality), and strong tourism growth makes the property one of the most appealing opportunities for investors.
Read more:
Tourism and Hospitality in Southern Europe: Market Dynamics, Investment Trends and Mid-Term Outlook
Hotel Loyalty Programs in 2024–2026: How 675 Million Members Are Reshaping Global Hospitality
Top Tourist Cities of 2025: New Euromonitor Ranking
Global real estate investment: key trends and Colliers’ outlook for 2026
Branded and Independent Hotels: Key Decisions, Risks and Opportunities for Investors in 2025