In a real estate environment shaped by macroeconomic uncertainty and increasingly diversified investment strategies, the Spanish hotel sector in 2025 has consolidated one of its most significant moments of the last decade. According to the report recently published by Colliers, hotel investment in Spain reached €4.275 billion, the second-best result on record, highlighting the strong appeal this segment continues to hold within the CRE asset universe.
A record year with regional nuances
This total investment volume reflects not only investor appetite for hotel assets, but also greater geographic and product diversification. 55% of investment was concentrated in the leisure segment, driven by higher average ticket transactions that reaffirm the strength of destinations such as the Canary Islands and Barcelona, which together account for more than 40% of total investment, according to the consultancy.
In addition, domestic hotel chains led investment activity, representing the vast majority of transactions and total volume invested—evidence of the confidence local-origin operators have in tourism’s recovery and in the resilience of the hotel segment. (colliers.com)
That said, this momentum is not without challenges. In Madrid, for example, hotel investment saw a significant decline—close to 40% year-on-year in 2025—driven more by a lack of available assets for transaction than by weaker investor appetite per se. In this market, transaction value stood at around €376 million, showing how limited supply can curb activity even in destinations with stable demand.
This contrast—between territories with strong investor pull and markets constrained by limited supply—is one of the key elements shaping the performance of Spain’s hotel sector within CRE.
What is driving hotel investment in Spain?
The surge in hotel investment is driven by several structural factors:
- Recovery of international tourism: after the impacts of the pandemic, tourism has shown very robust demand levels, with sustained growth in overnight stays and RevPAR (revenue per available room) across many key destinations.
- Specialized segments: operator interest in niches such as leisure and luxury hotels has pushed up average ticket sizes and increased competitiveness in certain markets.
- Confidence from domestic investors: Spanish hotel chains and groups have been the protagonists in most transactions, supporting market stability and reinforcing perceptions of lower risk.
However, supply pressure in certain cities—such as Madrid—highlights the need for greater availability of hotel assets, whether through conversion or the development of new projects, to sustain investment momentum.
Outlook for hotel CRE in Spain
Despite some regional imbalances, the 2025 outcome is unequivocally positive and sets the stage for opportunities in hotel CRE:
- Resilience capacity: the second-best investment result on record confirms that the hotel sector remains attractive even compared with other real estate asset classes.
- Diversification by product and location: the dominance of the leisure segment, along with growth in transactions in secondary tourism markets, reflects a broader ecosystem than in previous years.
- Need for supply: the scarcity of assets in urban centers like Madrid points to a clear opportunity for repositioning, conversion, and hotel development initiatives—an area where specialized capital can play a strategic role.
Hotels as a key piece of CRE
For real estate players, the hotel sector in 2025 stands out as a resilient segment, with solid demand and an investment structure led by operators with a medium- to long-term vision.
In line with Urbanitae’s commitment to CRE diversification beyond residential, this context offers an ideal framework to explore hotel investment opportunities—assessing not only their historical appeal, but also their value-creation potential in a structurally dynamic environment.
This report reinforces the idea that hotels not only compete with other real estate segments, but also complement them—especially as travelers and the global travel market continue to drive the post-pandemic recovery.
