Oxford location in Portugal- Image Credit Highgate
Southern Europe is experiencing a surge in resort development, with a network of 1, 142 accommodations and 126, 977 areas. The change in funding focus from big cities to extra locations in Italy, Portugal, Greece, France, and Spain points towards an evolving market that offers various opportunities for growth and development. Christina Choueifaty of STR writes that Investment in Southern Europe’s resort industry is flourishing with a major network of 1, 142 resorts accounting for 126, 977 apartments, of which 34, 016 are slated to open between April and December 2025. Italy’s luxury resort growth is expanding beyond important cities, with investors extremely drawn to extra places like Sicily and Tuscany. This change is due to government subsidies, improved facilities, and a growing desire for genuine journey experiences. This pattern signifies a maturing marketplace where investors enrich Italy’s total tourism practice by embracing a broader range of locations. Portugal’s tourism industry has shown remarkable progress, with visitors from the U. S., Canada, and Poland propelling this pattern. The Algarve and Lisbon areas have a strong network of 129 resort jobs, emphasizing branded hotels, especially in the Luxury and Upper Upscale segments. The Portuguese president’s fresh tourism strategy focuses on conservation and economic priorities, aiming to place Portugal as a leading responsible tourism destination. Greece is gaining momentum as a destination for beach resort purchase. The region’s hotel network includes over 50 % hotel rooms, presenting special challenges and opportunities for private equity firms to play a major role in financing these developments. This investor focus shift reflects the evolving dynamics of the resort hotel investment market. France’s hotel industry continues to attract substantial investment, with a noticeable shift toward secondary cities like Nice, Lyon, and Marseille. These cities offer robust MICE markets and improved transportation infrastructure, making them increasingly attractive destinations. Their relative affordability compared to the increasingly expensive Parisian market further incentivizes investment. Spain’s hotel investment market is witnessing robust activity, with secondary markets in Andalusia, Valencia, and the Murcia Region boasting higher room counts and more significant development in the proportion of existing rooms than in Madrid. Early-phase development activity has slowed significantly in Barcelona due to moratoriums on new development. Discover more at Linked In.
