top of page

Which European cities offer higher returns on investment in the hotel industry in 2025?

Which European cities offer higher returns on investment in the hotel industry in 2025?
Which European cities offer higher returns on investment in the hotel industry in 2025? - Portugal Business News

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.

 

 

bottom of page