Spain has become the most attractive destination in Europe for hotel investment for the third time in a row, ahead of Italy, the United Kingdom and Portugal. This was made possible by stable demand for tourism services and the sector’s good operating results, despite geopolitical and macroeconomic uncertainty caused by the military conflict in the Middle East.
The most attractive city for this type of investment is Barcelona, which shares first place with London, while Madrid is in the European “top 3”. In the case of the Catalan capital, there is high demand from both tourists and business travelers, its positioning as one of the main MICE destinations (for exhibitions, meetings, conferences, etc.) in Europe, as well as limited supply due to restrictions on the growth of tourist accommodation and the construction of new hotel properties.
The Iberian market is in the spotlight for investors
According to CBRE’s “2026 European Hotel Investor Intentions Survey”, Spain and Portugal continue to demonstrate the strength of their tourism fundamentals, putting the Iberian market at the center of attention for foreign capital. In particular, Lisbon ranks sixth thanks to growing interest in the peninsula as a whole as a diversified investment destination.
Thus, the volume of investment in the hotel sector on the Iberian Peninsula reached almost €1 billion in the first quarter of 2026, which is 44% more than in the same period last year and accounts for 21% of the total volume of transactions in Europe.
Luxury hotels remain the most attractive segment
As for location, the greatest demand is for properties located in major cities and established tourist destinations. This is especially beneficial for markets such as Spain and Portugal, where both types of destinations coexist. In addition, luxury hotels remain the most attractive segment for investors, accounting for 53% of their preferences.
At the European level, the attractiveness of the hotel sector remains high: more than 90% of investors plan to maintain or increase their investments in 2026. In particular, 31% intend to significantly increase investment compared with 26% last year.
According to the survey, investors are showing growing concern about operating and capital costs – especially the impact of increased capital expenditure requirements, renovation costs and operating expenses. This is compounded by geopolitical uncertainty, which remains one of the most significant factors for the market. At the same time, financing conditions have lost their importance as the main concern mentioned by investors, indicating “a certain stabilization in debt markets”.
