The sector experienced a remarkable 54% year-on-year increase in investment, signaling a strong and sustained rebound in global hospitality after years of uncertainty.

Portugal joins a select group of seven countries leading this surge, alongside the United States, the United Kingdom, Italy, Greece, Japan, and China. The Iberian nation saw a notable spike in cross-border hotel transactions, underscoring its growing appeal to international investors and the resilience of its tourism sector.

CBRE’s analysis reveals that this global upturn in hospitality investment has been largely driven by renewed travel demand, improved economic outlooks, and a favorable investment environment. As traditional asset classes continue to recover at a slower pace, hotel real estate has re-emerged as a lucrative and attractive option for global investors.

In the Europe, Middle East, and Africa (EMEA) region, foreign investment accounted for 61% of total hotel transaction volume. American investors played a particularly significant role, funneling substantial capital into European hotel assets, with the United Kingdom maintaining its position as the top destination. However, countries like Portugal, Italy, and Greece stood out for their rapid growth and increased transaction activity, signaling investor confidence in Southern Europe’s tourism-driven markets.

The Americas also benefited from this global momentum, although the EMEA region led the way in terms of cross-border capital inflows, contributing 74% of all foreign investment into the Americas. Notably, this shift was partly driven by a sharp decline in outbound investment from the Asia-Pacific region, particularly from China.

Despite this dip, Asia-Pacific itself saw a dramatic recovery, reaching 90% of its 2019 investment levels. Japan recorded a significant increase in 2024, representing nearly 50% of all cross-border hotel investments in the region. The consistent acquisition activity by U.S. investors helped fuel this turnaround, even as Chinese outbound investment dropped significantly, by 52% in EMEA and 70% in the Americas.

Full-service hotels remained the preferred asset class, accounting for 87% of all cross-border hotel transactions globally. These properties, often located in prime urban or resort locations, offer strong operational performance and long-term capital appreciation potential, key factors attracting both institutional and private investors.

Portugal’s inclusion in this top-performing group reflects not only the strength of its tourism sector but also its ability to attract sustained international capital. With its stable economic climate, high-quality hospitality assets, and government support for tourism, the country is well-positioned to maintain this growth trajectory.

Looking ahead to 2025, CBRE forecasts continued strength in global hotel investment, buoyed by falling interest rates, a positive tourism outlook, and balanced supply-demand conditions. For countries like Portugal, this momentum offers an opportunity to solidify their status as prime destinations for both tourists and international investors alike.

Author

Paulo Lopes is a multi-talent Portuguese citizen who made his Master of Economics in Switzerland and studied law at Lusófona in Lisbon - CEO of Casaiberia in Lisbon and Algarve.

Paulo Lopes