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Prima’s London Paddington resort redevelopment mission – Picture Credit score Prima
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The CBRE’s European Lodge Investor Intentions Survey 2025 reveals sturdy investor sentiment and strategic curiosity within the European hospitality sector. London continues to prime the record as probably the most enticing funding vacation spot.
Within the CBRE’s European Lodge Investor Intentions Survey 2025, London has emerged as probably the most most well-liked metropolis for resort funding for the second consecutive yr, underscoring its enchantment to buyers. The survey gives an in depth evaluation of investor sentiment, methods, and geographical priorities for the upcoming yr, drawing inputs from key stakeholders within the business.
Madrid has additionally strengthened its place because the second most tasty metropolis for resort funding in 2025, adopted by Rome, which has ascended to the third place. The rising curiosity in Rome mirrors the general development in Italy’s hospitality sector and the influence of the surge of latest international-class lodges within the metropolis.
Main European cities for resort funding in 2025
Supply: European Lodge Investor Intentions Survey 2025, CBRE Analysis
‘T’ signifies a tie with the identical variety of votes. Town rating contains 12 markets attributable to a number of markets recieving an equal variety of votes.
Key findings from the survey spotlight that over 90% of buyers intend to keep up or enhance their resort investments, underlining sustained confidence within the sector. Actual property funds, builders, and owner-operators are displaying elevated curiosity in lodges, attracted by promising return prospects and the sector’s outperformance in opposition to different asset lessons.
Traders are reportedly focusing extra on value-add methods. By way of acquisition constructions, vacant possession stays probably the most most well-liked, whereas Lodge Administration Agreements are gaining traction. Traders have a balanced desire for unbiased lodges and international manufacturers.
Relating to chain scales, upper-upscale and luxurious lodges stay prime funding priorities, propelled by sturdy post-pandemic efficiency and enduring demand from high-net-worth vacationers. Nonetheless, limited-service choices are additionally rising in curiosity attributable to their cost-effectiveness.
The is a optimistic outlook for European lodges as an funding selection, pushed by a good supply-demand steadiness and aggressive yields. As resort demand development continues to outstrip new provide, investor confidence within the sector’s long-term potential is escalating.