Asian investors and operators have Europe in their sites as they plan growth strategies for 2026, according to the region’s protagonists.
“Europe remains a cornerstone of Minor Hotels’ global platform, supported by a well-balanced portfolio spanning gateway cities, cultural capitals, and an expanding footprint in resort destinations,” says Dillip Rajakarier, CEO Minor Hotels. “This diversification provides resilience and allows us to capture demand across leisure, corporate, and blended travel segments,” he adds.
Rajakarier notes that a “key structural advantage” for Minor is the evolution of its operating model. “The integration of franchising alongside our managed and owned formats significantly enhances our capital efficiency and scalability. It enables us to partner selectively with high-quality owners while accelerating brand expansion across priority markets. This flexible model strengthens margins while reducing concentration risk.”
He says that the group is also benefiting from sustained long-haul demand into Europe, “particularly from our established Asian source markets”. Importantly, he says that the demand mix is broad-based, limiting exposure to any single feeder market.
“While geopolitical dynamics remain a watchpoint, we have not seen material disruption to trading. Our diversified footprint, dynamic pricing capability, and strong brand positioning provide confidence in our ability to navigate volatility. This year, performance will be driven by continued rate resilience, disciplined cost management, and the increasing contribution of high-margin management and franchise contracts.”
Compelling markets
Europe’s reputation for offering “diversification into stability” is still the “main reason” why it attracts cross-border capital flows, according to Arlette Mensing – director transactions, hotels – Colliers.
Mensing, who is moderating a panel at the IHIF EMEA entitled ‘Inbound investment: The next wave of Asian capital into EMEA’ says that international investors are drawn to “regulatory stability”.
She notes: “Geopolitical factors such as war in Ukraine did introduce volatility initially. However, four years on, investors are looking again at the main Central and Eastern Europe (CEE) capital cities, such as Prague, while continuing their ongoing interest in the core European cities and markets like Spain, Portugal, France and Italy where rebrand opportunities on core-located assets can be found.”
Minor Hotels is targeting European destinations like London, where the firm owns the Wolseley Hospitality Group. Rajakarier says: “London remains one of the world’s most strategically important hospitality markets, and our expansion strategy there is deliberately selective and brand-led.”
Meanwhile, the Middle East and North Africa also represent high-priority growth corridors for Minor Hotels, “underpinned by government-backed tourism strategies, large-scale infrastructure investment, and strong demographic and travel fundamentals”, he says. “In Saudi Arabia, our strategic partnership with the Tourism Development Fund (TDF) positions us to support Vision 2030 through the development of multiple hospitality projects under brands including Anantara, Avani, Tivoli, and Oaks.”
In Egypt, the business recently signed a landmark joint venture with Sunrise Resorts & Cruises to develop and manage up to 50 hotels across urban and resort destinations. “This includes the introduction of Anantara and the expansion into Nile cruise operations, strengthening our presence across both land-based and experiential river tourism,” he adds.
Elsewhere, upcoming openings include Tivoli LA VIE Muscat Hotel & Residences in Oman and the debut of Avani and Tivoli in Bahrain. “Beyond the Middle East, projects such as Anantara Kafue River Tented Camp in Zambia reflect rising global demand for immersive, experience-led luxury in emerging destinations,” he notes.
Living opportunities
Other major Asian hospitality players also exploring growth opportunities in the region. CapitaLand Investment (CLI) has operated in Europe for over 40 years, through its wholly owned lodging business, The Ascott Limited (Ascott). “The region remains a key growth market for us,” says Lou Limin, head of investment, lodging Europe, CapitaLand Investment. “Today, we have a strong presence of more than 8,000 units across over 60 properties in nine European countries.”
Research by the business concludes that Europe’s living sector is set to continue outperforming many traditional real estate asset classes, underpinned by structural drivers such as demographic change, urbanisation and persistent housing undersupply. “Within this landscape, serviced residences have emerged as one of the more defensive segments of the living universe,” Limin adds. “Sitting at the intersection of residential and hospitality, the sector offers attractive risk-adjusted returns, lower volatility and the ability to flex between short- and long-stay demand across cycles — qualities that are increasingly valued by institutional capital.”
There is also evidence that other living niches are trending, she says, with tighter regulation on short-term rentals across key European cities also reshaping the competitive landscape. “Professionally managed living assets, including serviced residences and purpose-built shared living (spanning flex, micro, studio and coliving concepts), are benefiting from this shift as cities seek more sustainable, long-term accommodation solutions that align with housing, labour mobility and urban resilience objectives,” she says.
An example of Ascott’s expertise is lyf Gambetta Paris, she adds, illustrating the firm’s “extensive experience repositioning underperforming or underutilised assets into higher-yielding properties”. Located in a vibrant district in Paris’s 20th arrondissement, lyf Gambetta Paris sits close to galleries, cinemas, trendy cafés and restaurants, street art and music venues. “Held under CLI’s lodging private fund, Ascott Serviced Residence Global Fund, the property addresses the flex living needs of young urban professionals in Paris, one of the world’s top 15 startup cities,” she adds. The property offers “an alternative hospitality model centred on flexible, experienced-led social living”, with amenities including coworking spaces, communal kitchens and lounges. She concludes: “Delivered within a three-year construction period, the adaptive-reuse strategy reduced development costs by upcycling existing structural components, accelerating time-to-market and enhancing capital efficiency.”
Investment trends
The changing appetite of Asian investors around operational risk is another interesting dynamic, Mensing says. “Asian capital has realised that to get more returns, it will need to take on more risk,” she says. “But that risk won’t include location – they still want to be in the main capital cities, and generally prefer urban locations over resorts.” This is due to wanting to attract both business and leisure customers, she notes. To achieve this, Asian investors are showing an increased appetite for active asset management, rather than just focusing on acquiring trophy assets. “They are looking at renovations, repositioning and investing in platforms as well, while maintaining a long-term view – they don’t always need an exit strategy,” she says.
Furthermore, Europe’s ability to generate new brands and concepts is also compelling. “Asian operators and investors are increasingly bringing European-born brands such as Moxy to APAC markets, as they seek to attract a new generation of travellers,” she concludes.