Spain has once again established itself as the most attractive destination in Europe for hotel investment for the third consecutive year, ahead of Italy, the United Kingdom and Portugal. This is driven by strong tourism demand and solid operating results, despite a backdrop of geopolitical and macroeconomic uncertainty linked to the conflict in the Middle East.
Barcelona ranks as the most attractive city for investment, sharing the top position with London, while Madrid is also among the top three in Europe.
In Barcelona’s case, the report highlights the strength of both tourist and business demand, its position as one of Europe’s leading MICE destinations, and a context of limited supply – shaped by restrictions on the growth of tourist accommodation and new hotel developments.
Meanwhile, Portugal is also strengthening its appeal at an urban level, with Lisbon ranking sixth. This reflects growing investor interest in the Iberian Peninsula as a diversified destination, according to CBRE’s 2026 European Hotel Investor Intentions Survey, which emphasises the strong tourism fundamentals of both Spain and Portugal and their prominence for international capital.
As a result, hotel investment volume in Iberia reached nearly €1 billion in the first quarter of 2026 – up 44% compared to the same period the previous year and representing 21% of total investment across Europe at the start of the year.
In terms of location, assets in major cities and established tourist destinations attract the highest demand. This positioning particularly benefits markets such as Spain and Portugal, where both types of destinations coexist.
Luxury hotels remain the most attractive segment for investors, accounting for 53% of preferences.
At the European level, the hotel sector continues to show strong appeal, with more than 90% of investors planning to maintain or increase their capital allocation in 2026. In particular, 31% expect to significantly increase investment, compared to 26% the previous year.
However, investors are showing growing concern about operating and capital costs – especially rising capex requirements, renovation expenses and operating costs. Geopolitical uncertainty also remains one of the most significant risk factors.
By contrast, financing conditions are no longer seen as a primary concern, suggesting a degree of stabilisation in debt markets.
