Executive Summary
CBRE’s European Hotel Investor Intentions Survey 2025 has gathered insights from industry key stakeholders. It provides a comprehensive analysis on investor sentiment, strategy, and geographic priorities.
The survey reveals that London remains the top investment destination for the second consecutive year*, with Madrid solidifying its position as the second most attractive city for hotel investment in 2025. Rome is now in third place due to the growing interest shown by investors in Italy’s hotel sector, and the effects of the new international-class hotels.
*Ranking based on the results of CBRE’s European Hotel Investor Intentions Survey, which resumed in 2024.
Key Findings
- Sustained Confidence: Over 90% of investors intend to maintain or increase their hotel investments, reflecting continued confidence in the sector.
- Investment Strategies: Real estate funds, developers, and owner-operators are showing increased interest in hotels, attracted by optimistic return prospects and outperformance against other asset classes. These investors report a stronger focus on value-add strategies.
- Acquisition Structures: Vacant possession remains the preferred acquisition structure, while Hotel Management Agreements are gaining attention. Investors show a balanced preference for independent hotels and global brands.
- Chain Scales: Upper-upscale and luxury hotels remain top investment priorities, driven by strong post-pandemic performance and sustained demand from high-net-worth travellers. Limited-service options are gaining interest due to their lean cost structures.
European hotels remain a top investment choice, driven by a favourable supply-demand balance and competitive yields. With hotel demand growth continuing to outpace new supply, investor confidence in the sector’s long-term potential is on the rise.
Stay ahead of the trend with our European Hotel Investor Intentions Survey. Read now to gain insights and make informed investment decisions in the year ahead.
CBRE Group, Inc.
CBRE Group, Inc.NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2023 revenue). The company has more than 130,000 employees (including Turner & Townsend employees) serving clients in more than 100 countries. CBRE offers a wide range of integrated services to a variety of clients, including property management, investment management, appraisal and valuation, property leasing, strategic consulting, property sales, mortgage services, and development services. Please visit our site at www.cbre.com.
Kenneth Hatton
Head of Hotels in Europe
CBRE Hotels
