Which European cities offer higher returns on investment in the hotel industry in 2025?
- Portugal Business News
- Mar 27
- 2 min read
Investment News Europe - Which European cities are the best for hotel investment in 2025? Does investing in hotels in Europe offer a good return on investment in 2025?
1 - Here are the Top 12 European cities that offer higher returns on investment in the hotel industry in 2025:
1 – London
2 – Madrid
3 – Rome
4 – Lisbon
5 – Barcelona
6 – Amsterdam
7 – Dublin
8 – Paris
9 – Brussels
10 – Copenhagen
11 – Berlin
12 - Athens
2 - Does investing in hotels in Europe offer a good return on investment in 2025?
Over 90% of investors intend to maintain or increase their hotel investments in 2025, reflecting continued confidence in the travel and tourism sector.
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-added strategies, according to a new report by CBRE.
Investing in hotels in Europe remains a top investment choice, driven by a favorable 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.
Upper-upscale and luxury hotels remain top investment priorities, driven by strong post-pandemic performance and sustained demand from high-net-worth travelers. On the other hand, limited-service options are gaining interest due to their lean cost structures.
Investing in vacant hotels remains the preferred acquisition structure, however Hotel Management Agreements are increasing. Investors show a balanced preference for independent hotels and global brands.