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HVS In-Depth Europe Hotel Valuation Index:   2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | 2016 | 2015 | 2014 | 2013 | 2012 | 2011 | 2010 | 2009 | 2008 | 2007 | 2006 | 2005 | 2004 | 2003 | 2002 | 2001

Istanbul, straddling both 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, home to iconic historical landmarks such as the Aya Sofya, the Sultan Ahmet Mosque (Blue Mosque), Basilica Cistern and the Spice Market, drives much of the city's leisure tourism. In contrast, 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 a substantial amount of corporate demand, with the financial districts of Levent and Maslak housing the headquarters of both major Turkish companies and international financial giants. Istanbul’s strong cultural appeal continues to generate significant foreign visitation, which accounts for approximately 65% of arrivals, alongside around 30% of corporate demand.

However, Istanbul, and Turkey as a whole, continues to grapple with macroeconomic challenges, including inflation (58.5% in 2024) and a depreciating currency. These economic difficulties, coupled with political uncertainty, have created a volatile environment for the tourism and hospitality sectors, impacting pricing strategies and investor confidence. Periods of depressed demand were triggered by events such as the July 2016 coup attempt and a series of terrorist attacks, while surges in visitation were driven by the sharp depreciation of the Turkish lira and the opening of the new Istanbul Airport in April 2019, which contributed to a notable rise in international arrivals.

The recovery from the COVID-19 pandemic began in July 2021 and continued throughout 2022. By the end of that year, RevPAR in euro terms had exceeded 2019 levels by approximately 50%. However, this positive momentum proved short-lived. Political uncertainty surrounding the general elections and the devastating earthquakes in southern Turkey in 2023 dampened market sentiment. Additionally, strained diplomatic relations with several Western countries and regional political instability have further weighed on international visitation. Yet, between 2019 and 2024, the supply in the city grew at a compound annual rate of nearly 4%, indicating persistent interest in the Turkish market.

In the past year, average daily rates have declined by approximately 21% in local currency terms and around 8% in euro real terms. Despite this, occupancy increased, resulting in a modestly positive trend in RevPAR. When comparing the performance to 2019, RevPAR in euro terms increased by 17% and in local currency by 139%.

Istanbul has a large pipeline with around 50 projects (8,000 rooms), representing approximately 7% of the existing supply. These projects include the 51-room IHG Vignette Collection Union Han, Istanbul Karaköy, and the 491-room Hilton Istanbul Airport, both of which are due to open in 2025.

Transaction activity remains limited. In 2024, only one hotel transaction was recorded. The 177-room Peninsula Istanbul was sold by Bilgili Holding to Dogus Group AS for an allocated price of TRY1 billion (€23 million), or approximately TRY6 million (€136,000) per room, in October.

According to our 2025 European Hotel Valuation Index, hotel values in Istanbul declined by 9.8% year-on-year in euro terms.

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

ADR Change
Market Demand Change
Hotel Occupancy Increase/Decrease
RevPAR Change
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 7725781037 (m)
	Tabitha Watkins Analyst [email protected] +44 0 7562956921 (m)
	Margherita Rivetti Consulting & Valuation Analyst [email protected] +44 0 7955271797 (m)