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Istanbul, straddling the continents of Europe and Asia, stands as a dynamic metropolis pulsating with history, culture and modernity. With a population of 16 million in 2024, Istanbul is not only Turkey's largest city, but also Europe’s most populous city and an overall global economic hub. The Old City has most of the historic monuments that drive leisure demand, including the Aya Sofya, the Sultan Ahmet Mosque (the Blue Mosque), the Basilica Cistern and the Spice Market, to name a few. Contrastingly, the New City is the modern face of the metropolis with its skyscrapers and shopping centres. Retaining some of the city’s history with its wooden houses, this district hosts historic sites such as the Dolmabahçe Palace and Clock Tower, Galata Tower, Nusretiye Mosque, Yildiz Palace and Rumeli Fortress. The city also attracts numerous corporate travellers; The Levent and Maslak financial districts are home to the headquarters of Turkey’s largest companies and banks, as well as the local headquarters of global giants of the financial sector.

Istanbul’s strong cultural appeal as a tourist destination typically generates substantial foreign visitation (which accounts for roughly 65.0% of arrivals), although the city also benefits from around 30.0% of corporate demand. Hotel demand in Istanbul plummeted in 2016 and 2017 owing to the coup d'état attempt in July 2016 and various terrorist attacks. In 2018 and 2019, as stability returned to the city, the market experienced an impressive recovery, resulting in double-digit RevPAR growth. Moreover, the continued depreciation of the Turkish lira, coupled with favourable government actions, such as the development of a new airport that opened in April 2019, resulted in a demand boost for the city, mainly from international visitors. From July 2021 onwards, after the pandemic impact, the city saw occupancy rates above 60.0% and this trend continued through to the year’s end, resulting in a RevPAR recovery of more than 75.0%, in euro prices, compared to 2020. While 2022 saw a full recovery in line with pre-pandemic years, occupancy fell by approximately 10 points in 2023 due to the uncertainty of the general election taking place in May, as well as the earthquakes in southern Turkey at the beginning of the year. Foreign travel somewhat reduced due to fears of unrest around the election, as well as media scaremongering that the rest of Turkey may also have experienced big earthquakes in the immediate future.

The city’s pipeline reached its highest levels end of 2023, with around 17,000 rooms coming on the market over the next years. Some of these projects include Marriott’s two extended stay hotels: the 202-room Marriott Executive Apartments Vadistanbul and 208-room Marriott Executive Apartments Istanbul Tema, both scheduled for 2024, as well as the 93-room Les Temps Istanbul Karakoy, Curio Collection by Hilton, set to open early 2025.

At the time of writing, we are not aware of any recent transactions in the market.

Our 2024 European Hotel Valuation Index indicates a slight value decrease of 0.8%, in euro terms, for properties in Istanbul, reaching 81.4% of 2019 levels. Following the re-election of Mr Erdogan in May 2023, a return towards better economic policies is expected with the depreciation of the Turkish Lyra against the US dollar to fair market value in the next three to four years. These developments should reduce the volatility in the market and allow for values to start recovering.

ADR, Demand, Occupancy, RevPAR, and Supply Projections:

ADR Change
Market Demand Change
Hotel Occupancy Increase/Decrease
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Market Supply Growth

Change In Value For Market: (€Euro)

Istanbul RevPAR Change (€Euro)

Istanbul RevPAR (€Euro)

For more information, please contact:

	Sophie Perret, MRICS, MBA Managing Director [email protected] +44 0 2078787722 (w) +44 0 7725781037 (m)
	Julia Dzerkach Associate [email protected] +44 0 2078787742 (w) +44 0 7912240964 (m)
	Clemence Sennavoine Senior Associate [email protected] ++44 0 7736273439 (m)