Lisbon in the TOP 5 of the most attractive European cities for hotel investment

Lisbon rose in the ranking of the most attractive European destinations for hotel investment in 2023, positioning itself in 5th position, with a total of 3.9 points out of five, according to the study by Cushman & Wakefield Hospitality, based on 60 interviews with directors of companies that accumulate 18,000 million in investment in the sector between 2019 and 2023. At the top of this list are two Spanish cities – Madrid, in 1st place, and Barcelona, ​​in 2nd – followed by Paris, in 3rd position, and Rome, in 4th place on the list.

If we compare with the ranking from the previous year (2022), the fastest growing destinations are Barcelona (+10%), Lisbon (+8%), Madrid (+7%), Rome (+6%) and Florence (+4 %). On the other hand, the biggest drops are observed in Edinburgh (-20%) and Istanbul (-31%).

Analyzing by regions, the Iberian Peninsula is the one that attracts the most interest, with 4.3 out of five in the global score, followed by Italy (4) and France (3.7). The fourth position goes to the United Kingdom and Ireland (3.5), while in 5th place are Germany, Austria and Switzerland, with 3.2 points, and below 3 points we find Benelux, Southeast Europe, Nordic countries and Europe Central and Eastern

More than half of the investors interviewed (53%) say that the luxury segment is now more appealing than in 2019 and, in second place, come Upper Upscale assets (46%), followed by Upscale and Economy hotels, with units Midscale & Upper Midscale to close the table.

Regarding the type of accommodation, resorts and serviced apartments are attracting more interest than before the pandemic. Airport hotels and those more focused on the MICE customer are less attractive than in 2019.

Analyzing the importance of ESG criteria, it appears that they are already mandatory in hotel transactions and the consultant’s report confirms that assets can increase their value by 5.5% if they have management certificates.

Finally, investors were consulted on the funds available to invest in hotels this year. 52% have between 50 and 200 million euros for acquisitions of hotel assets in Europe; 20% have between 20 and 500 million euros and another 20% above even 500 million euros.