CBRE launches first data-driven Hotels Index, positioning London as Europe’s most investible market

London tops the Index with a composite score roughly 25% higher than any other destination, underpinned by size, demand, and liquidity. Paris follows, supported by visitor volumes and strong revenue per available room (RevPAR) performance. Together, these two capitals define Europe’s most investible hotel markets. 

Southern Europe accounts for nearly half of the top 30 destinations⁽¹⁾, led by Spain, Portugal, and Italy. Madrid, Barcelona, Lisbon, and Mallorca post visitor volumes 20-30% above the continental average, while Rome, Milan, Venice, and Florence outperform on demand and pricing power despite moderate liquidity. Interestingly, Mallorca outscores Paris in terms of market size. Other leisure islands such as Tenerife and Gran Canaria also rank in the top quartile, reflecting sustained rate growth and constrained new supply.

Smaller lifestyle cities including Florence, Venice, and Athens continue to outperform what might be expected for their size, combining high visitor density, premium RevPAR, and limited pipelines to deliver strong investor appeal. Across all destinations, inbound arrivals and total overnight stays explain nearly 70-80% of Index performance, reinforcing the link between tourism vitality and investment confidence. 

Method

The CBRE European Hotel Destination Attractiveness Index: The 2025 results are based on a proprietary inaugural scoring model that benchmarks 66 European destinations against key market pillars and economic fundamentals.

1. Based on top 30 destinations by structural factors