The Valencian Community continues to achieve record numbers in tourism. Last year, this autonomous region was the fifth Spanish region with the highest number of foreign tourists, welcoming over 10 million visitors. In 2024, it appears that this trend will continue. In January alone, the number of international visitors increased by 29% compared to the previous year.
These figures reinforce the attractiveness of this community as a destination for hotel investment. According to data provided by Colliers, the Valencian Community as a whole recorded a total hotel investment volume of 197 million euros last year, following the acquisition of 25 hotels and approximately 2,650 rooms.
Alicante province, in particular, accumulated the highest transaction volume in the region, accounting for 44% of the total operations. The region has been attracting 46% of the investment for over five years, amounting to 452 million euros through the sale of 39 hotels and around 1,400 rooms.
Costa Blanca in focus
Within the province of Alicante, the Costa Blanca, the Mediterranean coastline that spans the entire province of Alicante, is increasingly catching the eye of investors. Despite not ranking at the top of the list of tourist hotspots like Madrid, Mallorca, or Tenerife, the Costa Blanca in Alicante is an interesting destination for chains due to its great potential and appeal. Gustavo Cumella, Director of Hotels in Levante at CBRE Spain, stated in an interview with Alicante Plaza that it is a consolidated market experiencing great dynamism—similar to the national trend—thereby arousing investor interest.
According to the consultancy firm’s data, the Costa Blanca experienced its second-best year in terms of tourist occupancy rates in nearly two decades. This achievement is attributed to the interest in “star” destinations such as Benidorm, which accounts for 60% of overnight stays in the province. Denia, Jávea, Calpe, Altea, Villajoyosa, Campello, Santa Pola, Guardamar del Segura, Torrevieja, and Alicante city are also among the most sought-after destinations on the Costa Blanca.
What attractions does the Costa Blanca offer to major hotel investors?
- Great climate. With an average annual temperature of 17°C, reaching 32°C in summer and 16°C in winter, and almost guaranteed sunshine throughout the year.
- High influx of foreign visitors. Overnight stays by foreign visitors increased by 57% in March on the Costa Blanca.
- Guaranteed international connections. Alicante Airport has announced the launch of 18 new international routes in 2024, further ensuring the arrival of international visitors.
- Hotel development potential. Alicante faces a shortage of accommodation according to tourism forecasts, prompting the municipality to expand hotel offerings, particularly in the luxury segment. Furthermore, the Valencian government strongly supports hotel openings in Alicante over the tourist apartment business, which has proliferated in recent years.
Several developers have already announced significant hotel projects on the Costa Blanca. Goya Real Estate will build “Gran Delfin Private Residences & Hotel” in Benidorm, located in the tallest building overlooking Poniente, with over 44 floors, 200 apartments, and an exclusive hotel. International brands like the French giant Accor, which encompasses 53 hotel brands, have chosen Alicante’s historic center to establish one of its eco-friendly ‘Greet’ hotels.
It’s undeniable that Spain maintains its appeal for foreign investment seeking sun and beach destinations. This is evident not only in the positive hotel investment figures but also in residential real estate. In fact, Alicante is the province where foreigners buy the most property, with 21,203 transactions in 2023, according to the Property Registrars’ Real Estate Yearbook on the housing market.
