The European hotel market remains a key sector for investors, with Portugal showing notable growth in investment attractiveness, as highlighted in the ‘European Hotels Investor Intentions Survey’ 2025, conducted by CBRE.
The company reported that Portugal secured the third position in the ranking of “most sought-after hotel investment destinations,” following Spain and Italy, which hold the first and second places, respectively, signaling a rising interest among international investors.
Moreover, according to CBRE, Lisbon has jumped directly to the fourth spot among the most attractive cities for hotel investment, “standing out for its increasing relevance in the European landscape,” a noteworthy leap considering that the Portuguese capital was not featured in the 2024 ranking, indicating significant progress in its competitiveness and appeal to investors.
“The Portuguese hotel sector has been consolidating its position as one of the most dynamic in Europe, driven by resilient tourism and an increasingly sophisticated market,” stated Duarte Morais Santos, director of hotels at CBRE Portugal, in the same report.
“Portugal’s ascent by four positions in this ranking reflects the acknowledgment of its robustness and potential for sustainable growth,” he added.
CBRE noted that despite geopolitical circumstances, “confidence in the European hotel market continues to grow.”
“Over 90% of investors are willing to maintain or increase their capital allocation to the sector,” indicating that it “offers competitive returns,” the company highlighted.
According to CBRE, Spain remains the prime investment destination for the second consecutive year, “supported by long-term market fundamentals and sustained tourist demand,” while Italy has surpassed the United Kingdom to take the second place.
“Portugal and the United Kingdom jointly hold the third position, while France and Greece have retained the fourth and fifth positions, respectively,” CBRE explained.
Regarding cities, London continues to be the top choice, with Madrid further solidifying “its status as the second most attractive city for hotel investment, and Rome entering the top three, advancing from the fourth position attained in 2024,” followed by Lisbon and Barcelona, completing the top five.
The CBRE survey was conducted during the last quarter of the previous year, collecting responses from 110 investors across various categories.
