Portugal Ranks 7th in European Hotel Investment Attractiveness

The '2024 European Hotel Investor Intentions Survey' by CBRE shows Portugal as the 7th most attractive country in Europe for hotel investments. Encouraging prospects are revealed for the sector, with around 90% of investors planning to maintain or increase investments in the tourism sector next year.

The European hotel sector is showing promising signs for investors in 2024, according to the '2024 European Hotel Investor Intentions Survey' conducted by CBRE. Portugal has emerged as the 7th most attractive country in Europe for hotel investments, showcasing its potential for growth in the tourism sector.

The survey indicates that around 90% of investors are planning to either maintain or increase their investments in the hotel industry next year. This optimism is fueled by the strong performance and resilience of hotel assets, which are expected to face fewer discounts compared to other types of assets. Additionally, the possibility of price adjustments is a key factor driving investment in hotel assets, with 28% of investors citing it as their main reason for increasing their investments.

Despite the positive outlook, the study highlights challenges such as the rising cost of capital, driven by increasing interest rates to combat inflation. The shortage of qualified labor is also identified as a factor impacting the industry, along with geopolitical instability in Europe.

Spain leads the list of most attractive countries for hotel investments in 2024, with Portugal making its debut in 7th place. The country's diverse range of destinations, from city breaks in Lisbon and Porto to beach resorts in the Algarve and Comporta, as well as nature escapes in Madeira, the Azores, and Alentejo, contribute to its appeal. The quality of service in Portugal is also recognized as a key factor in its attractiveness to investors.

Overall, the '2024 European Hotel Investor Intentions Survey' suggests that the European hotel sector is poised for a year of opportunities. Investor confidence is on the rise, and there is strong demand for hotels in key destinations, indicating resilience and readiness to face future challenges. By implementing innovative strategies and focusing on added value and experiential offerings, the hotel market is expected to continue its positive evolution in 2024.

The survey emphasizes that the hotel sector remains an attractive investment option with stability and growth prospects. The popularity of European destinations further solidifies the sector as a reliable choice for investors in 2024.