Turkey hotel investment slows as 280 new properties planned by 2027

Rising construction costs and difficulty finding suitable land are prompting hotel investors in Turkey to favor acquisitions of existing properties over building new ones. International chains are increasingly approaching local owners to expand or enter the market.

Despite this shift, research from Tourism Databank forecasts the opening of 280 new hotels in Turkey by the end of 2027, with investments reaching around $3 billion. Çiğdem Türkyılmaz, president of Servus International, said "roughly 7,000 new beds are expected to be added in Istanbul alone by 2027. However, investment momentum is slowing and the previous pace has been lost."

According to Türkyılmaz, the lack of available space in Istanbul is pushing hotel chains to look for properties for sale rather than new plots. She added that foreign investors' interest in Turkey remains but with greater caution, while Turkish investors are increasingly turning to investments in Europe, in the range of 20 to 30 million euros, developing an average of 10 to 15 hotels annually.