Turkey, a nation renowned for its rich history, vibrant culture, and breathtaking coastlines, has long been a top destination for tourists. The country attracts millions of visitors each year, drawn to its captivating blend of ancient wonders and modern attractions. But Turkey’s appeal extends beyond leisure travel. Its rapidly expanding economy and strategic geographic location have propelled it to the forefront of business travel destinations, leading to a surge in tourism-related investments.
This flourishing tourism sector is fueling a dramatic expansion of Turkey’s hospitality industry. Local reports indicate that the country’s ten largest hotel groups are planning an impressive 155 new projects by 2025, signifying an ambitious commitment to accommodating the growing influx of visitors. Local companies play a pivotal role in this development, managing investments, operations, and development, laying the groundwork for the country’s thriving tourism sector.
The buzz surrounding Turkey’s hospitality industry has not gone unnoticed by leading international hotel brands. These global players are eager to establish a presence in this burgeoning market, further solidifying Turkey’s position as a top destination for travelers worldwide. According to Lodging Econometrics’ 2024 2nd Quarter European Hotel Construction Investment Trend Report, Istanbul has emerged as a key player in Europe’s hotel development landscape, with 50 new projects, placing it second only to London, which has 76 projects. On a country level, Turkey ranks fourth in Europe for the number of new hotel ventures, underscoring its growing prominence in the region’s hospitality industry.
Turkey is poised for even greater growth in the coming years. By 2026, the country is expected to see the completion of 354 new hotel and tourism investment projects, alongside the launch of several local and international brand developments. According to Tourism Databank Research, as of August 11, 2024, nearly 100 new 4- and 5-star hotels are slated to open between 2025 and 2026. These additions will increase Turkey’s accommodation capacity by more than 12,000 rooms and 27,000 beds, with a total investment of approximately 24.8 billion TL. The 354 planned hotel and tourism developments are expected to deliver 57,055 rooms and 126,407 beds in total. Additionally, an estimated 92 billion TL is projected to be spent on renovation efforts. In the first half of 2024, hotel construction permits in Turkey surged by 88%, totaling 1,092 permits. The provinces with the most permits are Muğla, Istanbul, Balıkesir, Antalya, Trabzon, and Sakarya, while key districts include Bodrum, Ayvalık, Şile, Seril, and Sapanca, according to Tourism Databank data.
This surge in hotel development has created a highly competitive landscape in Turkey’s hospitality sector. As of July 2024, the Ministry of Culture and Tourism reports that Turkey boasts 6,009 operational facilities, 731 businesses with investment certificates, and a total of 14,867 accommodation establishments across various categories. Some of these properties, previously categorized under municipal certificates, have been reclassified by the ministry under simple operation certificates, reflecting a more streamlined approach to facility management and regulation in the country’s hospitality sector.
Research from Ekin Group reveals that 184 groups operate multiple facilities across Turkey, with the majority of these hotels—159 in total—being owned by local companies. Among the local chains, Dedeman leads with 40 hotels, followed by Anemon Hotels with 26 properties. Crystal Hotels operates 16 facilities, while Coral Hotels manages 14 locations. Additionally, Divan, Titanic, Kaya, and The Green Park brands each run 10 hotels, making them key players in the country’s dynamic hotel market.
Turkey has become a magnet for the world’s largest hotel groups, each vying for a piece of this lucrative market. This competition goes beyond simply investing, operating, or leasing (franchising) hotel properties. According to research by Ekin Group, 23 international hotel brands currently operate 400 hotels across Turkey, underscoring the country’s appeal to global players in the hospitality industry. Rather than investing directly, foreign hotel chains primarily focus on providing franchise naming rights to local owners, who pay between 4% to 5% of their room revenue, depending on the hotel’s type, class, and brand. These franchise fees amount to a collective 125 million Euros annually.
Tourism experts, however, emphasize the importance of foreign brands not only securing naming rights but also directly investing in the accommodation sector. The lack of tour operators making substantial investments in Turkish accommodations is a concern, with TUI, for example, owning only 16 hotels in Turkey. Similarly, Russian tour operators working with Turkish hotels hold limited market presence. Experts advocate for the establishment of a ‘tourism fund’ to address the sector’s growing need for capital and to strengthen the driving force behind the nation’s tourism industry.
