Athens Secures Spot in Europe’s Top Hotel Investment Destinations
Athens, Attica, Greece – March 21, 2026 – Athens has been recognized as a leading destination for hotel investment in Europe, as revealed by the 2026 European Hotel Investor Compass survey conducted by Cushman & Wakefield. The Greek capital, with an interest rating of 3.4 out of 5, is among the top 15 most attractive cities for investors, highlighting the robust performance and evolving trends within the European hospitality sector.
The survey, which gathered insights from 74 senior representatives of major investment firms, funds, and institutional investors, underscores the significant growth in Europe’s hotel industry. While traditional gateway cities such as London (4.1), Paris (4.1), and Madrid (4.2) maintain their strong appeal, Southern European destinations, including Athens, are experiencing a resurgence driven by a positive tourism revival, the rise of eco-tourism, and technological advancements enhancing customer experience.
Key Findings from the 2026 Survey
Milan emerged with the highest rating of 4.3, reflecting its strong position in the Italian hotel market, buoyed by increasing tourist demand and infrastructure development. Southern Europe, encompassing Italy, the Iberian Peninsula, and France, dominates the investment landscape, with its success in eco-tourism and rich cultural heritage attracting significant investor interest.
The top 15 most attractive cities for hotel investment in 2026, according to the survey, are:
- Milan: 4.3
- Madrid: 4.2
- London: 4.1
- Paris: 4.1
- Rome: 4.1
- Munich: 4.0
- Barcelona: 3.9
- Berlin: 3.8
- Lisbon: 3.7
- Amsterdam: 3.4
- Nice-Cannes: 3.4
- Edinburgh: 3.3
- Athens: 3.4
- Prague: 3.2
Southern Europe’s Growing Hospitality Sector and Sustainable Investment
Southern Europe continues to be a prime region for hotel investment, especially in Italy, Spain, and France. These areas have seen substantial growth in the hospitality sector due to a strong rebound in tourism post-pandemic. As travel restrictions ease and leisure travel demand recovers, these nations have become increasingly appealing to investors seeking both short-term and long-term returns.
Italy, in particular, stands out as the most attractive destination for hotel investment in 2026, with Milan, Rome, and Venice showing considerable growth. The Italian hospitality market benefits from a robust recovery in international tourism and rising demand for sustainable travel options. The Iberian Peninsula, including Spain and Portugal, also garners significant investor interest, with Madrid and Barcelona as key gateway cities and Lisbon and Porto emerging as popular destinations for eco-conscious travelers and digital nomads.
A significant trend highlighted by the survey is the focus on sustainable hospitality. Eco-tourism is playing a crucial role in shaping investment decisions, with a growing demand for sustainable hotels that minimize environmental impact, improve energy efficiency, and integrate with local communities. Southern Europe is well-positioned to capitalize on this demand, with many investors focusing on eco-friendly hotel projects that offer sustainable luxury.
Technology and Rising ROI Expectations
Technology is another pivotal factor driving growth in the hospitality sector. AI-driven solutions are expected to revolutionize the industry by enhancing guest experience, operational efficiency, and data management. An overwhelming 86% of investors surveyed believe AI will significantly impact the hospitality industry by 2030, presenting opportunities for improved profit margins and better services.
As the hotel market evolves, investors are also demanding higher returns. The average required return on equity (ROE) for hotel investors has increased to 15.6% for 2026, a 2 percentage point rise from the previous year. This reflects the increasing pressures in the hotel sector, including rising operational costs and the need for greater efficiency and technological integration.
Despite these demands, the strong performance of Southern European cities and the emphasis on sustainable, eco-tourism projects ensure that the hospitality sector remains a promising area for investment. Investors continue to seek markets that offer growth potential while balancing the need for high returns and sustainability.
The 2026 Cushman & Wakefield survey reinforces confidence in Europe’s hospitality industry, with strong interest in gateway cities and Southern Europe. The interplay of tourism recovery, technology, and eco-tourism is expected to fuel continued hotel investment, with cities like Athens playing a vital role in this dynamic landscape.
