The hotel sector continues to hold its appeal within European real estate, even amid economic and geopolitical uncertainty. More than 90% of investors surveyed by CBRE expect to maintain or increase their exposure to hotels during 2026, a sign that hospitality has moved beyond a secondary role to become a more structural component of many portfolios. In this context, Spain and Portugal are once again among the priority destinations for capital.
This is not only about the weight of tourism. International demand, a consolidated hotel supply and the possibility of repositioning assets explain much of the interest in the Iberian Peninsula. However, hotels are also particularly complex assets: they combine a real estate component with an operating business, meaning their performance depends both on the quality of the property and on the operator’s ability to manage occupancy, pricing, costs and the customer experience.
Spain leads expectations and Portugal strengthens its position
According to CBRE’s European Hotel Investor Intentions Survey, Spain is, for the third consecutive year, the European market with the best hotel performance outlook among surveyed investors. Portugal also holds a prominent position, ranking fourth among preferred destinations. Together with Italy, both Iberian markets account for more than 40% of stated hotel investment intentions in Europe for 2026.
Iberia’s prominence is also clear in the city-level analysis. Barcelona shares first place with London as the most attractive destination for hotel investment, Madrid ranks third and Lisbon appears in sixth place in the European ranking. These are markets with different profiles, but all combine relevant tourist demand with quality supply and opportunities for value creation.
However, these figures should be interpreted correctly. The survey reflects investor preferences and intentions, not investment already executed or guaranteed returns. Its value lies in showing where capital interest is heading and which markets are starting from stronger expectations.
Tourism supports the market and becomes less seasonal
Tourism fundamentals continue to support the sector. Spain received more than 17.5 million visitors during the first quarter of 2026, the highest figure ever recorded for that period and 4% more than a year earlier. Growth reached 8% year-on-year in March, reinforcing the trend towards demand that is less concentrated exclusively in the high season.
Reduced seasonality can favour more efficient hotel use and reduce dependence on just a few months of the year. It also allows activity to expand into segments such as urban, cultural, gastronomic and business tourism.
That does not make hotel demand inherently stable. The sector remains exposed to the economic cycle, transport costs, geopolitical events and changing travel habits. It must also deal with rising labour, energy and operating costs. Strong demand helps, but asset selection and management quality remain decisive.
Capital seeks to create value, not just acquire stabilised hotels
One of the most relevant trends is the preference for value-add strategies, focused on improving the asset and its operation. More than half of the investors surveyed by CBRE prioritise this approach, while opportunistic strategies are also gaining weight.
In a hotel, value creation can come from different routes: a refurbishment, a change of category or brand, the optimisation of rooms and common areas, an improved food and beverage offer, or more efficient management of pricing and occupancy. For this reason, returns do not depend solely on the evolution of real estate value or rents, as they do in other asset classes.
This capacity for intervention explains part of the sector’s appeal, but it also adds complexity. A repositioning plan can significantly improve a hotel’s performance, although it requires investment, market knowledge and rigorous execution. The operator, the brand and the commercial strategy can be as important as the location.
Luxury, extended stay and all-inclusive
The luxury segment continues to lead preferences, cited by 53% of investors. Alongside it, interest is growing in models with different operating profiles, such as extended stay — accommodation designed for longer stays and with services close to those of an apartment — and all-inclusive establishments, which are especially relevant in holiday destinations in southern Europe.
These formats respond to changes in demand. Luxury benefits from travellers with greater spending power and from the search for distinctive experiences. Extended stays can attract professional, corporate or temporary profiles, while all-inclusive offers an integrated proposition that is particularly attractive in leisure markets.
There is therefore no single hotel strategy. The appeal of each format depends on the destination, potential demand, competition and the asset’s ability to differentiate itself.
Investment confirms interest in the sector
Activity recorded in Spain supports these expectations. Between January and March 2026, around €700 million in hotel assets were transacted, 20% more than in the same period the previous year and the strongest start to a year since 2022.
This figure reflects the liquidity available for quality assets, but it does not mean that the entire market is advancing equally. In a sector so closely linked to operations, investors pay particular attention to location, the condition of the property, the operator, the contractual structure and the real repositioning potential.
At Urbanitae, this interest has also translated into opportunities linked to accommodation, such as Hotel Cruz del Campo in Seville. This type of project offers access to a segment different from residential and exposure to structural trends related to tourism, although with its own risks and dynamics that must be analysed in each transaction.
Iberia’s potential depends on selection and management
Spain and Portugal bring together several elements that explain their position on the European hotel map: robust tourist demand, internationally recognised destinations, consolidated supply and assets with room for improvement.
But the sector’s appeal does not rest only on tourism growth. It also lies in its capacity to create value through management, repositioning and adaptation to new ways of travelling. Precisely for that reason, the quality of the asset, the operator and the business plan is essential.
Iberia enters 2026 from a solid position, but in the hotel sector, choosing a good destination is not enough. The real difference lies in finding an asset capable of turning that demand into occupancy, revenue and sustainable long-term value.
