The Spanish city of Barcelona has joined London as a top hotel investment market, according to CBRE's 2026 European Hotel Investor Intentions Survey.
A year ago, Barcelona was the fifth most popular European city among hotel investors, CBRE said. Today, Spain is the most popular country for hotel investment in Europe.
Barcelona's tight regulation of tourist apartments and restrictions on new short-term rental licenses is attractive to hotel investors, and new hotel development continues to limit future supply growth, CBRE's report said.
Rounding out the top five behind London and Barcelona is Madrid in third and Milan and Paris sharing the fourth spot.
CBRE projects the top three countries for hotel investment in 2026 are Spain, Italy and the United Kingdom, which is unchanged from a year ago. The United Kingdom remains the largest market by deal number, if not overall value.
One key finding in CBRE's report is that hotel investors' preference for global brands rose to 53% in 2026 from 43% a year ago, while independent hotels fell to 24% from 40% in the same period.
“Soft brands continue to grow (24%), highlighting their flexible appeal. The shift signals a reversal in preference, with brands now seen as enabling value creation rather than limiting flexibility,” the report said.
Hotel investors are increasingly interested in opportunistic strategies, with such deals seeing an increase to 25% of transactions from 15%, which the report said suggests “a more selective return to higher-risk opportunities.”
Kenneth Hatton, head of hotels, Europe, CBRE, said in the report across all of Europe the “2026 results highlight a market underpinned by structural demand, including the rise of experiential travel across generations, withstanding cost pressures and geopolitical uncertainty, reinforcing hotels as a compelling real estate allocation.”
Hatton added it was possible investment in Europe would have softened due to conflict in the Middle East and continued macroeconomic uncertainty, but the results showed that was not the case.
In terms of segmentation, luxury hotels continue to lead the way. The report said that 53% of investors preferred luxury hotels, “while interest is also increasing towards more operationally resilient formats such as extended-stay and all-inclusive models.”
“Sustained travel demand and the sector’s pricing power continue to underpin investor appetite,” Ronald Chan, European hotels research lead at CBRE, said in a statement. “We are also seeing a shift in focus towards assets and formats where investors can unlock value while benefiting from more stable income streams, particularly in segments such as luxury and extended-stay hotels.”
According to a CBRE survey, 90% of hotel investors in Europe plan to increase hotel allocations across 2026.