Top 10 European cities for hotel investment

Amsterdam made the cut in Savills top 10 list for European hotel investment. But what number? Photo credit: repistu//Getty Images

What makes a city compelling for hotel investment? Is it population size? Demand generators, such as banking, medical, university, tourist sites? A locus for employment? Pockets that are already undersupplied?

It's undoubtedly a combination of all these variables, plus many more. International real estate advisor Savills decided it would be a good thing to rank the top 10 hot cities in Europe for hotel investment. 

In its analysis, Savills ranked cities according to their underlying operational performance fundamentals and relative value. The list was based on factors including the overnight visitor market, gross domestic product and employment growth forecasts, stock levels relative to demand and indicative prime yields as of Q1 2017.  

Savills points out that the top 10 are markets where the prospects for income security alongside capital preservation and capital growth look robust going forward. Tim Stoyle, head of hotels valuation at Savills, commented: “The analysis highlighted there are still a number of cities in Europe that offer good ‘value’ prospects in light of the outlook for operational performance going forward. Rob Stapleton, director in the hotels team at Savills, added: “Across Europe we are seeing increasing interest from investors looking for both the income and capital value growth provided by hotels."

The entire list is below, so toggle through to see the results. 

Top 10 European cities for hotel investment

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