Spain’s hospitality sector is capturing global attention as 2025 shapes up to be a landmark year for hotel and resort investments. Industry analysts and major investors are increasingly targeting Madrid and Barcelona, which have entered the top five most attractive European cities for hospitality investment.
According to the latest CBRE European Hotel Investor Intentions Survey 2025, Spain leads the way in investor confidence thanks to its sustained tourism demand, diverse accommodation offerings, and favorable economic conditions.
The renewed focus on the Spanish market coincides with an impressive surge in hotel investment across the continent. Transactions in Europe’s hospitality segment reached €5.5 billion in the first quarter of 2025 alone, with projections that the year will close at €25 billion—an increase of 12% compared to 2024. This momentum reflects not only investor appetite but also the resilience of hospitality assets, which have demonstrated an ability to adapt to rising costs and shifting market dynamics.
Spain Secures Its Place as Europe’s Investment Leader
Madrid and Barcelona’s emergence as top-tier investment hubs is anchored in a powerful mix of international visitor arrivals, diversified hotel portfolios, and strong returns on available room revenue. Within the European ranking, London maintains the top spot, with Rome and Lisbon occupying the third and fourth positions. Spain’s consistent performance has positioned the country as a secure and profitable destination for capital in the hospitality sector.
Investor confidence is further reinforced by data from the International Air Transport Association (IATA), which forecasts a 5.5% year-on-year increase in European air passenger traffic for 2025. This surge in arrivals directly supports occupancy rates and revenue growth, creating a favorable environment for both core and value-add investment strategies.
- Madrid ranks second among the most attractive European cities for hotel investment.
- Barcelona follows closely, securing fifth position in the continental ranking.
- Spain maintains its leadership in the European hospitality investment landscape.
The District 2025: Europe’s Premier Hospitality Investment Forum
The upcoming The District 2025 event, to be held from September 30 to October 2 in Barcelona, will provide a critical platform for examining hospitality investment trends. The event, considered the largest real estate capital forum in Europe, will dedicate a special focus to the evolving hotel and resort segment, bringing together senior executives and institutional investors from around the world.
Key speakers include Carlos Miró, Managing Director Development for Spain and Portugal at Hilton; Ittai Savran, CEO of Olala Homes; Alejandro Roca, Corporate Managing Director at Sercotel Hotel Group; and Miguel Casas, Managing Director Hospitality at Stoneweg. Their discussions will revolve around the balance of risk and return in current market conditions, with emphasis on value-add strategies and selective growth of core investments.
Additional insights will be provided by Jon Asumendi, Senior Vice President of Acquisitions at Starwood Capital Group, and Ignasi Solà, Vice President at Northwood Investors, who will focus on risk mitigation through careful planning, operational agreements, and asset management strategies. Meanwhile, John F Hewitt, Manager at Extendam, will highlight how brand perception and performance metrics influence asset valuation and investor interest.
New Hospitality Trends: Experiences, Branded Residences, and Extended Stays
Shifting lifestyles and the pursuit of experience-driven travel are reshaping the hospitality sector in Europe. Extended stays and hybrid formats are gaining popularity, especially in urban settings, as remote work trends and the preference for experiences over goods influence traveler choices. Serviced apartments, positioned between hotels and residential properties, are becoming a major focus for developers and investors alike.
Another fast-growing segment is branded residences—luxury residential complexes developed in partnership with renowned hotel brands. Europe is witnessing a notable boom in this model, with growth projections exceeding 300% in the coming years. In Spain alone, 47 projects are currently in development, comprising over 2,400 luxury units, particularly concentrated in high-demand areas like the Costa del Sol. Luke Treasure, Technical Director at Emin Capital, is set to explore this trend at The District 2025, underscoring how exclusivity, premium services, and brand prestige are attracting affluent buyers seeking a unique lifestyle.
| Hospitality Trend | Market Impact | Key Example |
|---|---|---|
| Serviced Apartments | Supports extended stays and urban remote work demand | All Iron developments in European capitals |
| Branded Residences | Combines luxury living with hotel services, growing 300%+ | 47 projects in Spain, mainly in Costa del Sol |
| Resorts | Rising demand for “all-in-one” vacation complexes | Wyndham Hotels & Resorts initiatives in Iberia |
Resorts Make a Strong Comeback
Resorts are regaining their allure among both travelers and investors. Concerns about overcrowded traditional destinations have driven demand for comprehensive holiday complexes that offer an integrated experience. These properties are increasingly tailored to digital nomads, emphasize sustainability, and often serve as destination brands in themselves.
According to CBRE, 66% of European investors now consider resorts to be favorable assets from a profitability perspective. Javier Galán, Vice President at Zetland Capital Partners, and Alejandro Scholtz, Development Director Iberia at Wyndham Hotels & Resorts, will highlight how this segment can deliver stable returns while meeting the evolving expectations of today’s travelers.
Spain’s Hospitality Market Looks to a Bright Future
With Madrid and Barcelona firmly positioned among Europe’s top five cities for hospitality investment, Spain is poised to maintain its status as a global leader in tourism-driven real estate. The convergence of sustained visitor demand, innovative lodging formats, and a vibrant resort sector creates a compelling case for investors seeking resilient and profitable assets.
As the European hospitality market continues to evolve, Spain’s strategic cities and coastal destinations are set to benefit from increased capital flows, driving urban transformation and offering travelers new experiences that align with modern lifestyles.
