The hospitality segment (assets linked to accommodation and tourism activity, especially hotels) has once again positioned itself as one of the key pillars of the real estate market in Spain. After several years of strong activity, 2025 confirms that investor interest in hotels not only remains strong but is evolving toward a more mature, more selective, and more strategic market. According to Cushman & Wakefield, hotel investment reached €4.2 billion in 2025, the highest level since 2019, consolidating Spain as the second most active hotel market in Europe.
This figure reflects a dual reality. On the one hand, the structural strength of Spain’s tourism sector. On the other, the ability of hotel assets to continue attracting capital within real estate diversification strategies. It is no longer just about acquiring hotels in established markets, but about identifying which assets can continue to create value in an environment of greater investment discipline.
A more mature and selective market
The Spanish hotel market has entered a more balanced phase. Investment levels remain high, but investor focus has become more demanding. Cushman & Wakefield highlights a clear preference for high-quality assets, particularly in prime locations, both in urban destinations and established resorts. At the same time, value-add strategies have gained prominence—transactions where the appeal lies not only in location or current income streams, but in the potential for operational improvement, repositioning, or refurbishment.
This shift is significant because it shows that the market is driven less by sheer volume and more by asset quality, management potential, and upside opportunity. In hospitality, value creation increasingly depends on the ability to reposition a hotel, upgrade its category, improve pricing, or adapt the product to a more sophisticated demand.
Strong operating fundamentals: rising rates and solid demand
Beyond investment volumes, the sector’s fundamentals continue to support hospitality’s attractiveness. Cushman & Wakefield reports an average daily rate (ADR) of €127.7 in 2025, up 5.1% year-on-year. Average occupancy reached 70.3%, improving by 1.2%, while RevPAR (revenue per available room) stood at €89.7, up 6.3% compared to the previous year.
Most notably, this growth was driven primarily by higher room rates rather than a sharp increase in demand volumes. From an investor perspective, this pattern suggests operational strength supported more by pricing power than by aggressive volume expansion.
Resort destinations once again lead the way
One of the key headlines of 2025 has been the stronger performance of resort destinations compared to urban markets. According to Cushman & Wakefield, RevPAR in resort locations grew by 6.6%, outperforming the 4.2% growth recorded in urban markets.
This difference is driven by robust international tourism demand and limited supply in many established destinations. Cushman also notes that hotel supply growth in Spain remained modest at just 0.7% year-on-year, helping sustain both occupancy and rates. In other words, demand continues to expand from already high levels while new supply grows at a measured pace—a particularly favorable combination for the sector.
Canary Islands and Barcelona lead, but capital is spreading
To complement Cushman’s view, Colliers data—based on a broader methodology that includes existing hotels, conversion opportunities, and land for new developments—places total hotel investment in 2025 at €4.275 billion, the second-highest figure in the history of the Spanish hotel market.
According to Colliers, the Canary Islands led hotel investment for the third consecutive year, with €1.039 billion across 17 transactions, while Barcelona topped the urban segment with €712 million across 20 deals. Together, these two markets accounted for €1.751 billion, representing 41% of total national investment.
However, one of the most interesting trends is that the top five destinations accounted for 68% of hotel investment in 2025, compared to over 80% in the previous three years. This suggests a growing role for secondary destinations, driven by pricing pressure in established markets and limited availability of prime assets.
What investors are looking for now
Hospitality investors are no longer simply seeking exposure to tourism. They are looking for assets with upside potential. As a result, strategies focused on refurbishment, operational improvement, repositioning, or operator changes have gained prominence. A well-located hotel with repositioning potential may now be more attractive than a fully stabilized asset with limited room for improvement.
From this perspective, hospitality is increasingly aligned with more sophisticated commercial real estate strategies: investments based not only on acquiring income, but on identifying where there is real potential to create value.
Hospitality remains strong
Beyond investment volumes, 2025 confirms that hospitality remains one of the most resilient segments of the Spanish real estate market. With strong tourism demand, limited supply growth, and an increasingly professionalized market, the hotel sector continues to offer clear appeal for investors seeking diversification and exposure to structural trends.
However, the market has also evolved. Not every asset or strategy will perform equally. The key increasingly lies in the quality of the hotel, its location, its operational potential, and its capacity for repositioning. That is where much of the value in hospitality is being created today.
