Portugal has secured its position as one of the top three most attractive destinations for hotel investment in Europe, alongside Spain and Italy, according to the European Hotels Investor Intentions Survey 2025 conducted by CBRE. Spain retained the top spot for the second consecutive year, while Italy moved to second place, overtaking the United Kingdom. Portugal now shares third place with the UK, highlighting its growing appeal to investors.
Lisbon made a notable debut in the city rankings, securing fourth place among the most attractive cities for hotel investment. London remains the top choice, followed by Madrid and Rome, with Lisbon and Barcelona rounding out the top five.
CBRE’s report highlights growing optimism among investors regarding the performance of the European hotel sector. Over 90% of investors plan to maintain or increase their hotel investment allocation, driven by competitive returns and confidence in the sector’s resilience. The report noted that while geopolitical uncertainty remains a concern for 2025, investor sentiment remains positive due to strong profitability prospects and the sector’s comparative performance against other asset classes.
Spain’s continued dominance is supported by strong market fundamentals and sustained tourism demand. Italy’s rise to second place reflects growing interest in its diverse hospitality offerings and the emergence of new world-class hotels.
Kenneth Hatton, Head of European Hotels at CBRE, stated that the imbalance between supply and demand in Europe remains a key factor driving investment. He noted a 34% increase in hotel investment volumes in 2024 compared to 2023, the highest growth rate among all regional sectors.
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Duarte Morais Santos, Head of Hotels at CBRE Portugal, emphasized Portugal’s strong position, attributing it to resilient tourism and a sophisticated market. He highlighted that Portugal’s four-place rise in the ranking reflects the recognition of its market strength and long-term growth potential.
According to the report, urban properties remain the most sought-after, with 65% of respondents favoring major gateway cities due to their long-term demand resilience and strong business and leisure travel markets. Additionally, 12% of respondents identified secondary cities as attractive investment opportunities, citing improved infrastructure and evolving travel habits as key factors.
This article is originally published on theportugalnews.com