Identifying the best cities to invest in a hotel relies on a series of objective and strategic indicators. At Moon Hospitality, we have identified five key pillars essential to this analysis.

Firstly, economic performance and tourist appeal are fundamental levers: regional GDP per capita, annual growth in tourist arrivals, and the number of overnight stays all help assess a region’s vitality.

Next, hotel market data must be carefully analysed. The average annual occupancy rate, RevPAR, and the average nightly rate are key indicators for assessing potential profitability.

Ease of access is another decisive criterion: proximity to an international airport or a high-speed train station, quality of urban transport, and major infrastructure projects all directly influence hotel footfall.

The competitive landscape is also crucial. This involves analysing potential market saturation, the presence (or absence) of differentiating concepts such as eco-hotels, boutique hotels, or coliving spaces, and the ability to position oneself with an original offering.

Finally, the regulatory framework and support from local authorities can significantly facilitate—or, on the contrary, hinder—a project: municipal policies supporting hospitality, investment incentives, subsidies, or favourable urban planning regulations.