More than 90% of hotel investors expect to maintain or increase their investment in the European hotel market in 2026, despite continued economic uncertainty, according to CBRE’s European Hotel Investor Intentions Survey 2026.
The findings show that investors remain focused on European hotels because of strong travel demand, improving return expectations and opportunities to create value from existing properties.
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However, investors are becoming more selective. Rather than pursuing deals across the market, they are focusing on locations, assets and brands that offer the strongest long-term potential.
Confidence remains strong
The European hotel investment market continues to attract attention from investors looking for stable income and growth opportunities.
CBRE’s survey, which collected responses from more than 70 hotel investment professionals, found that most investors expect their hotel allocations to either remain unchanged or increase in 2026.
The continued confidence comes as the hotel sector benefits from sustained demand from both leisure and business travellers. Major European cities and popular holiday destinations remain key targets, supported by their established tourism markets and international appeal.
“Investors are not stepping back from the market,” said Kenneth Hatton, European head of hotels at CBRE. He added that travel demand and hotels’ ability to adjust pricing were helping to support investor confidence.
The survey also found that investors expect better returns from hotels compared with recent years. This has encouraged many to continue looking for opportunities, even as higher costs and economic pressures affect decision-making.
Value creation drives deals
A major theme in the European hotel investment market is the focus on value creation.
Many investors are targeting existing hotels that can be improved through refurbishment, repositioning or operational changes. These strategies allow investors to increase a property’s performance rather than relying only on market growth.
Value-add investments remain the preferred approach among many buyers. Investors are looking for hotels where improvements can strengthen profitability and increase long-term value.
Older properties are attracting particular interest because upgrades can improve guest experience, energy efficiency and operational performance. However, rising construction and renovation costs remain a challenge.
Investors are therefore paying closer attention to whether improvement projects can deliver measurable results.
The survey shows that sustainability is also becoming increasingly important in hotel investment decisions. Energy efficiency improvements and upgrades to existing buildings are being considered as part of wider efforts to protect asset values and meet changing market expectations.
Brands and locations matter
Hotel brands are playing a growing role in investment decisions. CBRE’s survey found that investor preference for internationally recognised hotel brands increased in 2026, rising to 53% from 43% in the previous survey.
Strong brands can provide established customer demand, recognised standards and proven operating systems. These factors are increasingly important for investors seeking greater certainty in a competitive market.
Location remains another key factor. London and Barcelona were identified as leading European hotel investment destinations, while other major cities and successful leisure markets continue to attract interest.
Investors are also focusing on markets where limited new hotel supply can support long-term performance.
The outlook for European hotel investment remains positive, but investors are taking a more careful approach. Strong tourism demand, opportunities to improve existing properties and confidence in long-term returns are continuing to make European hotels an attractive asset class in 2026.
