The CBRE’s European Hotel Investor Intentions Survey 2025 reveals strong investor sentiment and strategic interest in the European hospitality sector. London continues to top the list as the most attractive investment destination.
In the CBRE’s European Hotel Investor Intentions Survey 2025, London has emerged as the most preferred city for hotel investment for the second consecutive year, underscoring its appeal to investors. The survey provides a detailed analysis of investor sentiment, strategies, and geographical priorities for the upcoming year, drawing inputs from key stakeholders in the industry.
Madrid has also strengthened its position as the second most attractive city for hotel investment in 2025, followed by Rome, which has ascended to the third place. The rising interest in Rome mirrors the overall growth in Italy’s hospitality sector and the impact of the surge of new international-class hotels in the city.
Leading European cities for hotel investment in 2025
Source: European Hotel Investor Intentions Survey 2025, CBRE Research
‘T’ indicates a tie with the same number of votes. The city ranking includes 12 markets due to multiple markets recieving an equal number of votes.
Key findings from the survey highlight that over 90% of investors intend to maintain or increase their hotel investments, underlining sustained confidence in the sector. Real estate funds, developers, and owner-operators are displaying increased interest in hotels, attracted by promising return prospects and the sector’s outperformance against other asset classes.
Investors are reportedly focusing more on value-add strategies. In terms of acquisition structures, vacant possession remains the most preferred, while Hotel Management Agreements are gaining traction. Investors have a balanced preference for independent hotels and global brands.
Regarding chain scales, upper-upscale and luxury hotels remain top investment priorities, propelled by robust post-pandemic performance and enduring demand from high-net-worth travelers. However, limited-service options are also rising in interest due to their cost-effectiveness.
The is a positive outlook for European hotels as an investment choice, driven by a favorable supply-demand balance and competitive yields. As hotel demand growth continues to outstrip new supply, investor confidence in the sector’s long-term potential is escalating.
Access the 2025 European Hotel Investor Intentions Survey.
