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Located on the Bosphorus strait, and lying on both the European and Asian sides, makes Istanbul the world’s only dual-continent metropolis. 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, the Hippodrome, Topkapi Palace, Suleymaniye Mosque, the Grand Bazaar and the Spice Market. Meanwhile, with its skyscrapers and shopping centres, the New City is the modern face of Istanbul, although it does retain some of the city’s history with its wooden houses bordering the Bosphorus and historic sites such as the Dolmabahçe Palace and Clock Tower, Galata Tower, Nusretiye Mosque, Yildiz Palace and Rumeli Fortress. As well as leisure demand, 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 due to the coup d'état attempt in July 2016 and various terrorist attacks. In 2018 and 2019, as stability returned to Istanbul, the market experienced an impressive recovery, resulting in strong RevPAR rebounds of 23.3% and 12.8% in euro terms (73.9% and 24.5% in local currency), respectively. 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. The market pandemic-induced downturn in 2020  extended well into the first half of 2021. From July 2021 onwards, the city saw occupancy rates raising above 60% and this trend continued by the year end, resulting in a RevPAR recovery of more than 75%, in euro prices, compared to 2020.  

The city’s pipeline remains modest with a couple of notable new openings in the upcoming years such as the 240-room Radisson Hotel Apartments Delta Istanbul Esenyurt, scheduled for September 2022, and the 158-room Mandarin Oriental Etiler, initially scheduled for 2022 but now postponed to 2023. Owing to the pandemic and economic upheavals, the number of hotel transactions in the city remains muted, with no major single asset or portfolio sales happening recently, that we are aware of.

Our 2022 Hotel Valuation Index indicates a value increase of 3.5%, in euro terms (31.8% in local currency), for properties in Istanbul. Whilst in the longer term we expect this market to regain its appeal as a prime investment market, the country’s current economic and political instability, reflected in high consumer price inflation and fluctuating GDP forecasts, are key short-term restricting factors.

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 Senior Director [email protected] +44 20 7878 7722 (w) +44 0 7725781037 (m)