Athens ranked second among 31 major European cities for hotel value growth in 2025, with values rising 5.5% against an average increase of just 0.2% across Europe, according to a March 2026 report by hospitality consulting firm HVS.
Only Copenhagen posted a stronger increase, at 5.9%. Bucharest ranked third with 4.6%, followed by Madrid at 4% and Zurich at 3.7%, the 2026 European Hotel Valuation Index found. All changes were calculated in euros.
The results extend Athens’ run of hotel market gains, although growth slowed from 11.8% in 2024. HVS linked the Greek capital’s performance to continued increases in revenue per available room, a measure that combines hotel occupancy and room rates.
The firm said Athens was becoming “increasingly attractive to institutional investors,” a trend it sees supporting the market over the medium term. The city’s gains stand out against an otherwise sluggish year for European hotel valuations.
Athens hotel value growth accompanied by investment surge
Athens recorded 663 million euros ($742 million) in hotel transactions during 2025, making it Europe’s fourth-largest city market by deal volume among those listed by HVS. That figure represented triple-digit growth compared with 2024.
London led with nearly 2.3 billion euros ($2.57 billion) in transactions, followed by Paris at 1.9 billion euros ($2.13 billion) and Berlin at 700 million euros ($784 million). Prague ranked behind Athens, with 580 million euros ($649 million).
Among notable deals, HVS highlighted the February 2025 sale of the remaining shares in the Four Seasons Astir Palace Hotel in Athens. European investors accounted for 76% of hotel transaction volume across the continent, the report said.
Athens’ longer-term figures also show a recovery after the pandemic. Hotel values in the city fell 18.2% in 2020 before returning to growth. They rose 11.6% in 2022, 11.2% in 2023 and 11.8% in 2024. HVS calculated the city’s compound annual growth rate at 5.5% from 2016 through 2025.
Hotel markets diverge despite rise in European investment
Elsewhere in Europe, 2025 brought mixed results. Hotel values fell 3.4% in London, 5.9% in Amsterdam and 7.6% in Istanbul. Copenhagen’s gains reflected strong demand and limited new supply, the report said.
European hotel investment transactions reached 22.6 billion euros ($25.3 billion), up 30% from 2024 but still 17% below 2019 levels. HVS said steady travel demand and a relatively small hotel development pipeline were helping support the industry.
The index estimates values for typical four- and five-star hotels in 31 cities. It models a 200-room property in each market using operating data, financing assumptions and investor expectations. Those estimates may differ from actual sale prices.
HVS warned that operating costs, financing pressures, and geopolitical instability could complicate the outlook for European hotels in 2026, even as demand remains strong.
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