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CBRE’s European Hotel Investor Intentions Survey for 2025 shows strong investor sentiments and strategic interest towards the European hospitality sector. London remains the top investment destination.
CBRE is the CBRE European Hotel Investor Intentions Survey 2025London is the city most investors choose to invest in hotels for the second year running. This highlights the appeal of the city. The survey offers a detailed look at investor sentiments, strategies, as well as geographical priorities, based on input from industry leaders.
Madrid, Rome and Barcelona have all risen to become the top three cities for hotel investment by 2025. Rome is a city that has seen a rise in interest due to the expansion of Italy’s hospitality industry and the new, international-class hotels opening in the area.
Top European cities for hotel investments in 2025
CBRE Research, European Hotel Investor Intentions Survey for 2025.
“T” denotes a tie in which the number of votes is equal. Due to the fact that multiple markets received an equal number votes, 12 markets are included in the city ranking.
Over 90% of respondents plan to keep or increase their investments in hotels, indicating a high level of confidence. The sector is attracting more interest from real estate funds, developers and hotel owners, who are attracted to the high returns and superior performance of hotels compared to other asset classes.
Investors, according to reports, are increasingly focused on strategies that add value. Hotel Management Agreements continue to gain popularity. Investors are equally interested in independent hotels and international brands.
As for chain scales: luxury and upper upscale hotels continue to be top priorities due to the robust post-pandemic performances and the persistent demand of high-net-worth travellers. Limited-service hotels are also gaining in popularity due to their affordability.
There is a good outlook for European hotels, thanks to a favorable balance of supply-demand and attractive yields. Investors are becoming more confident in the long-term potential of this sector as demand for hotels continues to exceed supply.
