Europe identifies Portugal as a leading hotspot for hotel investment
For the second consecutive year, Spain maintains its position as the top investment destination for hotel investment in Europe. However, Portugal is making significant strides, moving up the rankings due to strong momentum in 2025. The country shares third place for hotel investment attractiveness in Europe with the United Kingdom, and Lisbon completes the Top 4 cities for hotel investment.
Investment volumes in Portugal have seen a substantial increase, with €331 million in the first half of 2025 alone, marking a 33% rise compared to the same period in 2024. This growth is driven by sustained international interest, particularly from high-net-worth investors such as Spanish family groups, who are attracted by Portugal's stability and high appreciation potential within a robust tourism market.
Key factors driving this increase include robust tourism demand and market stability, growing appeal of smaller and diverse locations, significant growth in real estate investments overall, and a positive industry outlook across Southern Europe. Confidence among accommodation providers in Portugal is notably high, with 63% expecting positive business development and 62% planning steady investment levels in the near future.
Moreover, Portugal appears at the top of European investors' preferences for hotel investments, with 71% of the sector’s investment secured by international buyers. The city of Lisbon is among the most attractive cities for investment in the hotel industry, with hotels like Anantara Vilamoura and Cascais Miragem drawing significant transactions.
Despite the geopolitical situation being the main challenge for investment in 2025, the European hotel market continues to grow in confidence. More than 90% of investors are planning to maintain or increase their investment allocation in the European hotel sector, demonstrating growing optimism regarding the performance of the European hotel sector.
Italy is in second place in the ranking of most attractive destinations for hotel investment in Europe, with Rome moving up to third place in the ranking of most attractive cities for hotel investment. London remains the top choice for hotel investment at city level, while Madrid solidifies its status as the second most attractive city for hotel investment.
France maintains fourth place in the ranking of most attractive destinations for hotel investment in Europe, and Barcelona completes the Top 5 cities for hotel investment. The growing interest in the Italian hotel sector is widespread, driven by the country's diversified hospitality offering and the emergence of a new group of world-class hotels. The sector offers competitive returns, and investor sentiment remains optimistic in the European hotel market.
In summary, Portugal's hotel investment market is on the rise, driven by robust tourism demand, growing international interest, and a positive industry outlook. As the country continues to attract investors, it is poised to maintain its position as one of the top destinations for hotel investment in Europe.
Business representatives in Portugal are experiencing heightened optimism as investments in the country's hotel sector continue to surge. Tourists visiting Portugal are drawn to its lifestyle, culture, and scenic travel destinations, which contribute significantly to the robust tourism market, enticing high-net-worth investors. Portugal's investment volumes in the first half of 2025 soared to €331 million, marking a 33% increase compared to the same period in 2024, making it a competitive destination for hotel investments in Europe.
