Top Cities by Investment Potential:

• Seville, Novalja, and Edinburgh rank highest when balancing property costs with RevPAR.
• Markets like Florence, Dubrovnik, and Spain’s coastal resorts also offer high RevPAR with manageable property costs.
• Tier AAA cities like London and Paris face challenges due to high acquisition costs and tighter regulations.

Regulatory Considerations:

• Investors must be aware of evolving regulations in key cities. Examples include Scotland’s licensing requirements and Barcelona’s planned short-term rental ban in 2028.
• The EU is introducing regulations requiring platforms to share host data with authorities, increasing scrutiny on the sector.

2024-2025 RevPAR Outlook:

• RevPAR growth potential in Europe is more muted due to rising supply.
• In 2024, occupancy and average daily rates were down slightly compared to 2023.
• Investors are advised to focus on high-performing destinations and consider second-tier cities for better value.