Portugal is the 7th most attractive country in Europe to invest in hotels. The study ‘2024 European Hotel Investor Intentions Survey’, developed by CBRE, reveals “encouraging prospects for the sector”. Around 90% of investors plan to maintain or increase the volume invested in the tourism sector next year.

“This optimism is fuelled by the solid performance and resilience of hotel assets, which should suffer fewer discounts compared to other types of assets. However, the possible price adjustment is also an important factor for some investors, with 28% citing it as the main reason for increasing investment in hotel assets”, reads the CBRE statement.

Despite the confidence, the study highlights the cost of capital, which “is the main challenge for hotel investors in 2024, driven by rising interest rates as a way to combat inflation”. Furthermore, the shortage of qualified labour is also highlighted as a factor impacting the industry. “In Europe in particular, geopolitical instability is another topic that investors are following closely”, says the consultant.

“Great potential”

Another relevant point highlighted by the study is that, in 2024, Spain leads the list of most attractive countries to invest in hotels. Portugal appears for the first time in 7th place in this ranking, “demonstrating great potential”, both due to the diversity of destinations offered (short city break in Lisbon and Porto; beach in the Algarve and Comporta; nature in Madeira, Azores, and Alentejo) and due to the quality of service.

“The results of this study indicate that the European hotel sector is positioned for a year of good opportunities. Growing investor confidence and strong demand for hotels in key destinations are clear signs that the sector is resilient and ready to face future challenges. With innovative strategies and a focus on added value and offering experiences, we hope to see continued positive evolution in the hotel market in 2024", comments Duarte Morais Santos, Hotels Director at CBRE.

The '2024 European Hotel Investor Intentions Survey' shows "that the hotel sector continues to be an attractive investment, with strong prospects for 2024" "Stability and growth, combined with the popularity of European destinations, make the hotel sector a solid choice for investors", concludes the document.