Intelligent Investment
2024 European Hotel Investor Intentions Survey
April 16, 2024 5 Minute Read
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Overview
CBRE's 2024 European Hotel Investor Intentions Survey delves into the responses of Europe-based investors, exploring their investment appetite in hotel assets and their preferred strategies and markets for 2024.
Previously, the UK held the leading position as an investment destination. However, our latest survey reveals that Spain has now taken over this position. The increasing interest in Spain is further evident at a city level, with Madrid overtaking Paris to secure the second spot behind London in our 2024 survey.
Leading European countries for hotel investment in 2024
Source: 2024 European Hotel Investor Intentions Survey, CBRE Research
Results
Key findings from the survey include:
- Investors express confidence in investing in hotel assets, with over 90% of respondents expecting to maintain or increase hotel investments in 2024. Hotels are expected to experience a smaller discount compared to other real estate sectors, owing to their resilient trading performance
- More than any other single issue, the cost of capital stands out as the foremost challenge for hotel investors in 2024. This is primarily driven by interest rates, which have risen to counter inflation. Labour costs, another inflationary concern, rank as the second most significant issue. Additionally, over 80% of respondents perceive geopolitics as a factor that will influence investing in Europe
- Value-add strategies dominate investor preferences, with repositioning opportunities being the most sought-after. Unaffiliated hotels are in demand, with vacant possession being a priority for 36% of respondents. Among European investors, soft brands surpass hotels directly affiliated with the global brand family, while full-service hotels remain popular
- While demand for resorts remains strong, hotels located in central business districts (CBD) now lead in terms of popularity. Gateway cities continue to dominate as the preferred destinations. London retained its top spot while Madrid has increased in popularity. Athens has entered the top 10, serving as evidence of Greece’s strong positioning in the market over the past five years
Read our European Hotel Investor Intentions Survey report to stay informed about the evolving trends and investor sentiment in the sector.
