New investor sentiment research reveals Mediterranean markets dominating the European hospitality investment agenda
Greece has established itself as the standout destination for institutional hotel capital in Europe, according to new research published by Questex’s Hospitality Investor, the editorial intelligence platform focused exclusively on the hospitality capital markets. The findings point to the market dynamics that will shape discussion at the R&R Forum in November, as capital continues to focus on Europe’s resort and leisure hospitality sector.
Greece at the top of the institutional agenda
Greece was identified as the preferred European investment destination by 43% of Hospitality Investor poll respondents, ahead of Italy (29%), Spain and France (14% each). The findings confirm what many in the market have long anticipated: Greece is no longer a peripheral opportunity for opportunistic capital. It is now the primary focus of institutional hotel investment across the continent.
“Greece has moved from 2008-crisis casualty to Questex Investor Council’s top European hotel investment destination, with fundamentals industry leaders compare to ‘Spain 10 years ago.’ The question isn’t whether Greece is a hot hospitality investment market, it’s who’s deploying capital and with what thesis: Private Equity build-to-sell versus long-hold institutional versus domestic family money versus branded operator expansion. There is more capital chasing Greek hospitality assets than there is supplied to meet that demand currently,” said Alexi Khajavi, President Hospitality & Operational Real Estate, Questex.
This direction is consistent with wider investor sentiment captured earlier in the year, with the IHIF EMEA Investor Pulse Check showing continued focus on Europe and strong confidence in gateway markets. Against that backdrop, Greece’s combination of natural landscape, cultural authenticity, airlift connectivity and a supportive regulatory environment place it firmly at the centre of the current investment thesis.
Luxury and quality assets driving allocation
Investor appetite is concentrated at the top of the quality spectrum. Among Hospitality Investor poll respondents, 57% are targeting 5-star assets under professional management, with a further 29% pursuing 3-star resort properties with value-add potential. Demand for urban hotel assets registered at zero.
The wider market backdrop supports this shift toward quality. Earlier-year investor sentiment also pointed to strong interest in upper-upscale, upscale and luxury hospitality segments, reinforcing the direction now visible in the Hospitality Investor poll. Greece, while expanding its pipeline of internationally branded luxury and ultra-luxury resort developments, is eager to meet this demand.
Capital is being redirected, not withdrawn
Despite an uncertain geopolitical backdrop, investor confidence in European hospitality fundamentals remains robust. Among Hospitality Investor poll respondents, not a single investor reported reducing or pausing investment activity. Instead, 57% are shifting deployment toward alternative European or more resilient markets, with Mediterranean destinations, and Greece in particular, emerging as the primary beneficiaries of that reallocation.
A further 14% are maintaining existing exposure while applying greater underwriting discipline, and an equal share are actively increasing investment activity, identifying emerging value within current market conditions.
Earlier-year sentiment provides further support for this picture, with private equity investors continuing to view European gateway markets as a source of opportunity despite geopolitical uncertainty. The direction of travel is clear: experienced capital is adjusting strategy rather than withdrawing from the market.
A market at an inflection point
The Hospitality Investor data points to three structural trends reshaping leisure hospitality investment across Europe.
Institutional capital is concentrating rather than diversifying, clustering around markets offering the strongest risk-adjusted returns, with Greece consistently leading that ranking. The quality premium is sharpening, as investors move up the asset curve toward professionally managed, brand-affiliated product with defensible rate positioning. And geopolitical disruption is being absorbed with experienced capital adjusting strategy rather than withdrawing from the market.
For Greece, the convergence of these trends represents a significant inflection point. The country offers what institutional investors are actively seeking: luxury and upper-upscale resort assets, a high-opportunity gateway market rating, authentic experiential credentials, and a regulatory environment increasingly aligned with large-scale foreign investment.
Dr Marinos Giannopoulos, CEO of Enterprise Greece, said: “The continued success of the R&R Forum and its return to Athens for a third consecutive year underscore Greece’s growing importance as a leading destination for hospitality investment and international business collaboration. Recent Questex findings placing Greece at the top of European hospitality investment preferences confirm the strong confidence of the global investment community in the country’s prospects. By bringing together leading investors, developers and industry decision-makers from around the world, the R&R Forum contributes meaningfully to strengthening strategic partnerships and further enhancing Greece’s position as a premier destination for tourism and investment.”
This is the investment environment the R&R Forum is designed to serve. Taking place in November, the Forum brings together investors, owner-operators, developers and the wider hotel leisure sector as Europe’s specialist platform for relationship-building, market intelligence and deal-making in resort and leisure hospitality.
