European Hotel Market Attracts Strong Investor Interest Amid Growth Opportunities
Investor confidence in the European hotel market remains strong, with over 90% of respondents to CBRE's survey expecting to maintain or increase their investments in 2026. Despite economic uncertainty, sustained travel demand and improving return expectations are driving interest. Investors are focusing on value creation through property upgrades rather than broad market expansion. A key trend is the preference for hotels that can be repositioned or renovated to enhance performance. Older properties are particularly attractive due to potential improvements in guest experience and energy efficiency. However, rising renovation costs pose a challenge, prompting investors to prioritize projects with clear returns. Hotel brands also play an increasingly important role, as 53% of investors now favor internationally recognized names for their established customer bases and operational reliability.