Turkey becomes hotbed of investments
INTERNATIONAL REPORT— As tourism in
Turkey reaches record heights, the country is becoming one of Europe’s hottest
hotel investment markets, with Istanbul and the resort city of Antalya major
hubs of new projects.
Data from the Turkish Statistical
Institute shows an 8.3% hike in tourism revenue in 2024, to $61.1 billion, as
Turkey’s international visitor numbers rose by 9% to over 62 million. Those
figures are seeing investment interest blossom along with signings with big
brands.
According to Lodging Econometrics,
Turkey has a record high of 130 projects and 19,038 rooms under development,
putting it third in the European construction pipeline after the U.K. and
Germany. In Q4 2024, Istanbul was the second top market in Europe after London,
with 49 projects/7,903 rooms.
IHG recently added three hotels to
its Turkey portfolio, said Developement Director Nilsun Tümer. IHG now has 33 open hotels and 12 in its pipeline across
seven brands.
The February signing of the Crowne
Plaza Istanbul West in partnership with Artas Turizm was part of a strategic
expansion of all brand segments in Turkey, said Tümer, fueled by surging
leisure and business tourism demand.
Turkey saw positive RevPAR growth for IHG in 2024 and remains one of our fastest-growing European markets… This makes it a highly attractive destination for hotel investment, reflected in our recent signings.
Nilsun Tümer
“Turkey saw positive RevPAR growth
for IHG in 2024 and remains one of our fastest-growing European markets, driven
by rising demand in the luxury, mainstream, and resort segments. This makes it
a highly attractive destination for hotel investment, reflected in our recent
signings.”
Tümer said established tourist hubs
such as Istanbul, Antalya, and Bodrum are attracting significant foreign
investment and tourism.
“However, we are seeing numerous
opportunities across several newer destinations, from cities to coastal
locations such as Izmir and Cappadocia, with plans to expand further,” she
said.
Tümer said IHG is working closely
with several Turkish investors to meet that growth, “focusing on how different
global brands can adapt to the Turkish market with both management and
franchise agreements.”
This year, IHG is debuting its
first Garner brand and Vignette Collection in Turkey and is also seeing great
momentum with its Crowne Plaza brand with 13 hotels open and two pipeline
properties.
Interest from big
brands
Accor, too, is reinforcing its
expansion strategy in Turkey, “tapping into this vast tourism potential and
growing its presence from economy to luxury,” said Paul Stevens, the group’s
COO for the Premium, Midscale & Economy division for the Middle East,
Africa and Turkey.
In January, the openings of the
Ibis Styles Kurtköy in Istanbul’s business district and the launch of the
Mercure Ankara Kızılay in Ankara kicked off a year of 10 additional signings,
with more openings due over the next 18 months, Stevens said.
“Turkey stands out among the most
dynamic and rapidly growing regions, with 15 of Accor’s 45-plus brands
currently present in the market across 80 operating hotels. As we strengthen
our footprint in the country, we are evaluating new opportunities and expanding
our portfolio with 20 additional properties in the pipeline by 2030.”
Stevens said Accor’s growth
strategy in Turkey is focused on increasing the presence of established brands, including ibis, Mövenpick, Novotel, Pullman and Swissôtel – and opportunities
to introduce new brands like Tribe in key cities and resorts “to meet different
accommodation demands in different segments.”
The 2024 opening of the 383-room
Mövenpick Resort Antalya Tekirova was one example of this; he added,
“highlighting the huge potential in maximizing Accor’s presence along Turkey’s
strong coastal leisure destinations.”
Antalya is also on Marriott’s radar
(along with Istanbul and Ankara) for a Four Points Express by Sheraton, with
the January opening of the Cappadocia Marriott Hotel flagged as one of 20 planned
openings in 2025 as its growth in Turkey unfurls.
Many investors are feeding into the
record 16.6 million foreign tourists to Turkey’s second top destination in 2024
– an 8% year-on-year increase, according to Kaan Kaşif Kavaloğlu, president of
the Mediterranean Touristic Hoteliers’ and Investors’ Association (AKTOB).
Eyüp Mavi, group chairman of the Fenix Companies Group, partnered with Accor in 2023 to develop the Swissôtel Antalya Kalkan.
Investor interest
Eyüp Mavi is the group chairman of
the Fenix Companies Group. He described his 2023 partnership with Accor to
develop the Swissôtel Antalya Kalkan as a turning point in the company’s
growth.
The luxurious 245-room hotel is set
to open this year in Kalkan, Antalya Province, as part of the mixed-use Fenix
Center, comprising a ritzy shopping mall, apartments and restaurants, and the
Swissôtel.
Mavi foresaw untapped potential in
the resort town with its turquoise bays and beaches, a three-hour drive from
Antalya. “It is located close to the airport, with 7 million tourists a year
passing through,” he said of the site, which had been vacant for 25 years.
Both the Dalaman and Antalya
airports are expected to become epicenters of surging tourism in the region.
Mavi wanted to attract tourists and Russian investors with one of the largest
projects of the Mediterranean region, costing 850 million lira ($23 million)
and creating a new luxury destination in the city for vacationers.
“Russians who previously came for
shopping or holidays are now buying property in Antalya, helping to accelerate
investments,” Mavi said. He said foreigners, particularly Russians, have bought
most of the residences.
The development aims to give those
investors hotel services and the possibility of renting out their properties to
the hotel business.
“The return on investment for those
apartments given over to the hotel business has a short period of four to five years,
which proves that it is a unique project for investors,” said Mavi, who’s
banking on 80% occupancies for the hotel. That compares to a national average
of 62.7% in 2024, according to The Hotel Association of Türkiye (TÜROB), as
inflation soared – and ADRs dropped to €130.
Antalya is a magnet for
investments. Hotel rates in the resort city rose 19.35% in 2023 to €172–
compared to €143.5 in Istanbul. TÜROB expects rates to improve nationally in
2025, along with economic conditions.
IHG’s Tümer agrees with the positive
outlook – and says investment obstacles are diminishing “in the improving
economic landscape.”
“The Turkish Tourism
Investors’ Association (TTYD) has forecast that tourism investments in the
country are set to accelerate this year as interest rates start to fall. We see
strong growth potential, which fuels our commitment to expanding and launching
our conversion brands in Turkey,” Tümer said.
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