Investors favor existing hotels over new builds in Türkiye

Özge Esen- ISTANBUL

Rising costs and difficulties in securing land are pushing hotel investors in Türkiye to acquire existing properties rather than build new ones, according to industry representatives.

International hotel chains looking to expand in Türkiye or enter the market are increasingly approaching owners of existing hotels as acquisition opportunities gain prominence.

Despite expectations of increased activity through new hotel openings and renovation projects in 2027, investment momentum has slowed compared with previous years. According to research by Tourism Databank, as of Oct. 22,, a total of 280 new hotels are expected to open in Türkiye by the end of 2027, with total investment spending projected to exceed $3 billion.

Çiğdem Türkyılmaz, chairman of international tourism investment consultancy Servus International, said acquisitions have become a key component of investors’ growth strategies.

Türkyılmaz noted that finding suitable land for new hotel developments has become increasingly difficult, particularly in major cities and leading tourism destinations.

“Approximately 7,000 new beds are expected to be added in Istanbul alone in 2027. However, there is a slowdown in investments, and the previous momentum is no longer there,” she said.

According to Türkyılmaz, many investors are choosing to sell their hotels, creating opportunities for market entrants to acquire operating properties instead of developing new projects.

“Brands want to establish hotels in prime destinations, but especially in Istanbul, there is virtually no space left for new hotel construction, so they are pursuing available properties for sale,” she said.

Türkyılmaz said foreign investors have not abandoned their interest in Türkiye but are acting more cautiously. She also noted that Turkish investors have increasingly turned their attention to Europe.

“We observe that 30 percent to 40 percent of investors in Türkiye have investments in Europe. Investments in the range of 20 million to 30 million euros are being made, and on average at least 10 to 15 hotels are developed each year,” she said.