European Hotels Destination Index — CBRE

Europe’s hotel sector is propelled by sustained travel growth during a period when supply growth is projected to be well below the historical average. This is capturing the attention of a wider cohort of global real estate investors. In this context, market participants are turning increasingly to data-driven approaches to identify the most promising investment opportunities.

CBRE presents its inaugural European Hotels Destination Index, a proprietary index scoring model, that benchmarks 66 European destinations based on two key dimensions, with each factor equally weighted: Key market pillars and economic fundamentals. Together, these underpin the resilience, liquidity, and investment potential of hotel assets across Europe. In addition, we outline the key defining attributes of destination appeal. While these are not included in the Index scoring model, they play an influential role in shaping a destination’s long-term attractiveness.

The Index evaluates markets through factors such as international tourism flows, hotel demand, investment penetration and labour costs, as well as the macroeconomic landscape including workforce depth and elasticity, local economic health, and destination affordability.

With investors continuing to seek clarity in a complex and competitive investment landscape, this tool provides a structured framework to compare markets, prioritise opportunities, and align location strategies with future growth potential where fundamentals best support their strategic investment objectives.

Download full report here