The Spanish hotel sector secured its position as Europe’s top market in 2024, attracting a staggering €3.3 billion in investments across urban and holiday destinations.
According to a report by consultancy firm Christie & Co, Spain’s appeal to investors remains strong, driven by the country’s post-pandemic tourism recovery and the increasing demand for premium accommodations.
This impressive investment figure, while slightly below the €4 billion recorded in 2023, highlights the resilience and attractiveness of Spain’s hospitality market.
Notably, 40% of the total investments came from foreign investors, signaling continued international confidence in Spain’s tourism sector.
Key Investment Hotspots in Spain
While Madrid led the market with €589 million in hotel investments, followed closely by Barcelona with €572 million, a significant trend emerged in secondary urban destinations.
Cities beyond the primary hubs attracted over €200 million, with investors eyeing repositioning opportunities that promise high returns.
In the Balearic Islands, investment reached €679 million, outpacing the €598 million in the Canary Islands, where fewer large transactions occurred. These island destinations, long favored by tourists, continue to draw substantial capital, particularly in the premium segment.
Trends Shaping Spain’s Hotel Market
According to Alberto Martín, Associate Investment Director at Christie & Co, the outlook for 2025 remains optimistic, with investment levels expected to stay above €3 billion. Martín highlighted that while primary cities like Madrid, Barcelona, and Malaga will see fewer opportunities, secondary cities will become the new focus for investors. These cities offer attractive repositioning projects, catering to the growing demand for unique, high-quality stays.
The report also noted a shift towards premium assets, with four- and five-star hotels accounting for 70% of rooms transacted in 2024. This trend reflects the sector’s post-pandemic evolution, where upscale properties have become more desirable for both travelers and investors.
Major Transactions in 2024
Several high-profile deals defined Spain’s hotel investment landscape last year. The most notable was the €200 million acquisition of the Miguel Ángel Hotel in Madrid by Stoneweg and Lopesan. Other significant transactions included the sale of the Six Senses Ibiza to Grupo Statuto and Travelodge’s purchase of six hotels across Madrid, Barcelona, Malaga, Alicante, and Murcia.
Corporate acquisitions also played a key role, with Partners Group buying the BlueSea hotel chain for approximately €275 million, adding 5,000 rooms across 30 hotels to its portfolio. Room Mate expanded its presence by acquiring Staying Valencia, adding 10 hotels and 500 rooms to its operations.
2025 Outlook
As Spain enters 2025, industry experts predict sustained investment activity, driven by the stability of the sector and the continued valuation growth of hotel assets. While portfolio transactions saw a decline in 2024, making up only 26% of investments, individual asset purchases surged to 75%, reflecting heightened interest from family offices, private investors, and hotel companies.
With investors now looking beyond traditional hotspots, Spain’s secondary cities and island destinations are poised to become the new battleground for hotel investments, offering exciting opportunities for growth and innovation in the country’s hospitality landscape.
