Hotel Real Estate Remains a Sought-After Asset Class Despite Challenging Market Conditions
Latest mrp hotels trend survey among 42 real estate market participants 69 percent currently attach high or very high importance to hotel investments Around 45 percent expect the share of hotel investments in real estate portfolios to increase over the next three years Spain is seen as the market with the strongest investment momentum Financing and construction costs remain the key headwinds
Hotel investments continue to hold their ground as an attractive asset class despite elevated financing costs and economic uncertainty. This is the key finding of the latest trend survey conducted by mrp hotels among 42 real estate market participants, including investors, asset and investment managers, and real estate advisors.
Respondents take a particularly positive view of the segment’s long-term prospects: around 45 percent expect hotel investments to gain further importance over the next three years. At the same time, more than 90 percent consider hotels to be at least as attractive as, or more attractive than, other asset classes.
“The results clearly show that, despite economic uncertainty, hotel real estate is perceived as a resilient and future-proof component of institutional portfolios. Operator quality, location profile and flexible use concepts are moving increasingly into focus,” says Martin Schaffer, Managing Director at mrp hotels.
Market Position: Hotels Establish Themselves as a Strategic Portfolio Component
In the current market environment, hotel investments already play a key role for a large proportion of respondents. Nearly 70 percent rate their importance within their field of activity as high or very high. The outlook also remains largely positive: around 45 percent of participants expect the share of hotel investments in real estate portfolios to increase going forward. Only around 14 percent anticipate a decline, while 41 percent expect no change.
Hotels also perform well in the attractiveness ranking compared with other real estate sectors. While residential real estate continues to be regarded as the most attractive asset class, hotels rank alongside logistics real estate and clearly ahead of office and retail properties.
“This underlines the growing role of hotels as a strategic element of diversified real estate portfolios,” Schaffer adds.
Regional Investment Strategies: Spain and Prime Urban Locations in Focus
Respondents expect the strongest investment momentum over the next two years in Spain, cited by 55 percent, followed by the domestic market Germany at 40 percent, Italy at 33 percent and Scandinavia at 29 percent. This indicates that many investors are focusing in particular on markets with strong tourism demand and stable growth prospects.
Prime urban locations continue to dominate among preferred investment locations: more than 83 percent of respondents currently view metropolitan areas as particularly sought after. At the same time, leisure destinations and resorts are regaining importance, cited by 43 percent — an indication of sustained demand in the leisure segment.
Investment Environment: Financing Costs Remain the Greatest Challenge
The survey findings show that global tourism demand trends, cited by 60 percent, and stable operator performance, cited by 55 percent, are currently the key decision-making drivers for hotel investments.
At the same time, the market environment remains challenging. More than 83 percent of participants identify the current interest rate and financing environment as the greatest headwind. Rising construction costs, cited by 57 percent, and operator-related risks, cited by 45 percent, are also having a noticeable impact on investment decisions. By contrast, regulatory requirements, cited by 10 percent, and ESG requirements, cited by 5 percent, currently play a comparatively minor role.
Market Evolving into a Specialised Operator- and Concept-Driven Segment
Participants see particularly strong growth potential in budget hotels and serviced apartments, each cited by 52 percent. Both segments are benefiting from travellers’ growing price sensitivity as well as increasing demand for flexible and longer-stay accommodation formats.
Overall, the survey shows that the European hotel investment market is becoming increasingly differentiated and professionalised. For investors, specialised operating concepts, strong brands and clearly positioned locations are continuing to gain in importance.
“The market is moving away from the traditional standard product towards specialised concepts with strong operator expertise and a clearly defined target audience. This is precisely where the greatest opportunities for investors will lie going forward,” Martin Schaffer concludes.
Methodology: For the trend survey, mrp hotels polled market participants from the hotel and real estate sectors between 15 April and 21 May 2026. Respondents included institutional investors, asset and investment managers, brokers, advisors and family offices. A total of 42 people took part. The survey was conducted anonymously online.
