Spain Tops CBRE's List as Most Attractive European Destination for Hotel Investments
Discover why Spain has surpassed the United Kingdom as the top choice for hotel investments, with Madrid ranking second in the latest CBRE report.
Spain has emerged as the most attractive European destination for hotel investment, surpassing the United Kingdom, according to a recent report by CBRE. The European Hotel Investor Intentions Survey report highlights Spain's market as the top choice for investors looking to capitalize on the hotel sector. The report notes that Spain's hotel sector had a stellar performance in 2023, with an increase in investment volumes compared to the previous year. In fact, Spain led hotel investment last year, accounting for €4.1 billion, 36% of the total investment in the sector.
The positive outlook for Spain's hotel sector continues into 2024, with projections indicating growth in the number of tourists and overnight stays. CBRE's Data Science Department forecasts a 1.6% increase in tourist numbers and a 1.5% increase in overnight stays, with foreign tourism driving much of the growth. Madrid has also emerged as a key player in the hotel investment landscape, overtaking Paris to become the second most attractive city for investment after London. The report highlights the growing interest from international capital, particularly from Latin America, in Spain's capital.
Barcelona also features prominently in the list of attractive cities for hotel investment in Europe, ranking sixth overall. Other cities such as Paris, Rome, and Amsterdam also make the list, with Athens ranking ninth and presenting opportunities for investors in key tourism cities. The report indicates that 70% of hotel investors plan to increase their capital commitments in the sector, reflecting optimism in the sector's evolution in Europe.
Luxury and ultra-luxury hotel products are the most attractive segments for investment, with urban products and resorts also garnering investor interest. The report notes a renewed focus on urban products, with resorts proving historically resilient to inflation.
Overall, Spain's rise as the top European destination for hotel investment underscores the country's strong performance in the sector and the growing interest from international investors. With positive projections for 2024 and a dynamic hotel market in Europe, investors are optimistic about the opportunities in the sector.