Madrid ranks first among European cities for hotel expansion, with a score of 3.9 out of 5, according to Cushman & Wakefield’s Hotel Operator Compass Europe 2026 report. Rome and Milan share second place with 3.8 points, while London and Barcelona complete the top five with 3.6 points each. The study is based on responses from 138 executives at hotel operators active in Europe or planning to grow there.
Spain and Italy account for four of the five highest-rated cities. Interest from operators reaches 78% in Madrid and 72% in Barcelona, counting companies that expressed moderate, high or very high interest. According to the report, these markets stand out for combining tourist and corporate demand, business travel and conferences.
In the Iberian Peninsula, Seville and the Costa del Sol also stand out as expansion destinations. The Andalusian capital attracts moderate, high or very high interest from 88% of operators active in the region, while the Costa del Sol, including Málaga, scores 3.8 out of 5 and attracts interest from 81%. Among Spanish resort destinations, the Balearic Islands score 3.4 points, and the Canary Islands and the Costa Blanca 3 points each. Across Europe, 72% of operators show high or very high interest in coastal resort hotels, rising to 82% among companies with portfolios of more than 50 hotels.
The report also identifies changing priorities in the sector. The share of operators willing to offer more favourable commercial terms to hotels with demanding environmental certifications has fallen from 49% in 2023 to 31% in 2026, as ESG criteria have become more widespread. Meanwhile, 59% of operators believe artificial intelligence is already having a significant impact on the business, and a further 28% expect it to do so within the next two years.
On contracts, 57% of operators sign or are considering leases as a growth model. Among companies that offer or are considering this model, 40% are making greater use of hybrid leases combining fixed and variable rents.
The fourth edition of the study was carried out between August and September 2026. The operators that disclosed their identity have combined portfolios of more than 10,400 hotels and 1.3 million rooms in operation, plus a further 1,750 hotels under development in Europe.
