Barcelona has joined established market leader London as Europe’s top hotel investment destination in 2026, according to CBRE’s latest European Hotel Investor Intentions Survey, as investor demand continues to focus on high-performing, supply-constrained markets.
The city has climbed from fifth place in 2025 to reach the top ranking. Madrid ranks third, with Paris and Milan sharing fourth place, reinforcing continued appetite for a mix of gateway and leisure-driven cities.
Barcelona’s growing appeal is underpinned by resilient hotel demand across both leisure and business travel, supported by its position as one of the Europe’s leading MICE (Meetings, Incentives, Conferences and Exhibitions) destinations.
Tight regulation of tourist apartments and restrictions on new short-term rental licences are redirecting accommodation demand back towards hotels, while constraints on new hotel development continue to limit future supply growth.
Despite continued geopolitical and macroeconomic uncertainty, confidence in the European hotel market remains firm, with more than 90% of investors planning to maintain or increase their capital allocation in the sector.
The sector offers strong fundamentals, with 31% of respondents planning a large increase in allocations, up from 26% in 2025, and only a small number expecting to reduce exposure. Optimistic total return prospects and pricing valuation opportunities are cited as the main drivers of investment activity.
At a country level, Spain remains the top investment destination expected to deliver the strongest hotel fundamentals in 2026, followed by Italy and the UK, with the top three unchanged from last year, pointing to continued investor confidence in these markets. France and Portugal share fourth place. The results indicate that Southern Europe is expected to attract a significant share of investor attention, with Iberia and Italy together accounting for more than 40% of total planned capital deployment intentions.
CBRE Press Release While value-add remains the dominant strategy, investors are beginning to rebalance their approach, with interest in opportunistic strategies increasing to 25% from 15% in 2025, suggesting a more selective move towards higher-risk opportunities.
Luxury hotels remain the most attractive segment for investors, attracting 53% of investor preference, while interest is also increasing towards more operationally resilient formats such as extended-stay and all-inclusive models. At the same time, investor preference for globally recognised brands has risen to 53% up from 43% in 2025.
CBRE’s 2026 European Hotel Investor Intentions Survey was conducted between February and March 2026 and includes responses from more than 70 hotel investors across Europe.
Kenneth HattonEuropean Head of Hotels at CBRE, said: “Despite a more complex geopolitical backdrop, investors are not stepping back from the market, supported by resilient demand dynamics and the prospect of attractive long-term returns. Rising capital expenditure and operating costs have emerged as the most significant concerns for investors, highlighting an increasing focus on operational performance and value delivered from capex projects. We are seeing investors take a more evolved view of the markets they are interested in, making them more selective and focusing on assets and strategies that clearly deliver on their own particular investment thesis.”
