News / From the associates

According to CBRE’s European Hotels Destination Index—which analyzes 66 European destinations based on structural and economic factors—the European hotel sector is benefiting from growing demand amid highly disciplined supply development, with over 90% of markets characterized by balanced development pipelines. London and Paris remain the leading European gateways in terms of size, liquidity, and international demand, while cities such as Barcelona, Madrid, and Rome follow closely behind thanks to solid fundamentals and sustained tourist flows. Alongside major urban hubs, leisure and cultural destinations are gaining strength, showing more dynamic growth trajectories: Venice, Rome, and Mallorca are projected to see a compound annual growth rate in international arrivals ranging from 4.8% to 7.9% through 2030, signaling a gradual diversification of tourism demand and investment opportunities.

The analysis also highlights that liquidity in hotel markets is generally consistent with structural fundamentals, albeit with differences between mature destinations and emerging markets. Major gateways exhibit greater stability in market activity, while some secondary and leisure cities show potential for liquidity growth above historical levels, albeit with greater seasonality. In terms of operational performance, following the strong post-pandemic rebound, some mature markets saw RevPAR normalize in 2025, while other European cities—including Copenhagen, Bucharest, and Warsaw—experienced significant growth, driven by greater accessibility and a more limited supply. Labor costs remain a significant structural factor, with Southern European and leisure markets benefiting from greater competitiveness compared to major urban centers in Northern Europe.

Within the European context, Italy emerges as one of the most attractive countries: hotel demand in Italian cities exceeds the European average by 10–15%. Milan, Rome, Venice, Florence, and Naples rank among the top 20 European destinations when considering both structural and economic factors, confirming Italy’s prominence within Southern Europe, which accounts for nearly half of the top 30 hotel destinations. This performance reflects solid demand fundamentals, well-established infrastructure, and controlled supply growth—elements that support long-term pricing and reinforce the Italian market’s appeal to investors seeking stable and resilient returns.