Athens is emerging as one of the leading performers in Europe’s hotel market in 2025, with property values in the Greek capital rising by 5.5% over the past year, placing it second in Europe behind Copenhagen, according to a study by hospitality consulting firm HVS.

Strong demand, steady growth in revenue per available room (RevPAR) and increasing interest from institutional investors continue to support the city’s positive momentum, the report said.

Across Europe, hotel property values remained largely stable in 2025, recording a marginal increase of 0.2%. However, significant differences were observed between markets. Alongside Athens and Copenhagen, Bucharest and Madrid posted strong growth, driven mainly by high demand and limited new supply.

By contrast, markets such as Istanbul, Amsterdam and Frankfurt faced challenges linked to political and economic uncertainty, rising operating costs and the addition of new hotel capacity.

The United Kingdom remained Europe’s most liquid market, accounting for 25% of total transactions.

Athens had already led the rankings between 2022 and 2024, with double-digit growth in hotel values (11.6%, 11.2% and 11.8% respectively).

At the European investment level, 2025 saw 175 more hotel transactions compared with 2024, with total value reaching €22.6 billion — a 30% year-on-year increase. Despite the rise, transaction volumes remained about 17% below 2019 levels.

Major deals included the sale of Mare Nostrum Resort in Tenerife, W London, the transfer of remaining shares in Four Seasons Astir Palace Athens, as well as the sale of Pullman Montparnasse in Paris and Caesare Augustus in Capri.