Executive Summary

CBRE’s European Hotel Investor Intentions Survey 2025 gathered insights from key industry stakeholders, providing a comprehensive analysis of investor sentiment, strategies, and geographical priorities for the year ahead.

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 climbs to third place, reflecting growing interest in Italy’s hospitality sector and the effect of the influx of new international-class hotels.

*Ranking based on the results of CBRE’s European Hotel Investor Intentions Survey, which resumed in 2024.

Leading European cities for hotel investment in 2025; note: ‘T’ indicates a tie with the same number of votes. The city ranking includes 12 markets due to multiple markets receiving an equal number of votes. — Source: European Hotel Investor Intentions Survey 2025, CBRE Research

Key Findings

1. Sustained Confidence: Over 90% of investors intend to maintain or increase their hotel investments, reflecting continued confidence in the sector.
2. 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.
3. 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.
4. 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.

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About 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 serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.

Kenneth Hatton
Head of Hotels, Europe
CBRE Hotels

Real Estate & Investment