Spain, the second-largest hotel investment market in Europe
Spain is currently one of the top tourist destinations, and its appeal is also reflected in hotel investment activity. According to a report on the pan-European hotel market by the consulting firm Savills, this asset class attracted €3.3 billion in 2024—14.2% above the ten-year annual average.
This figure cements Spain’s position as the second-largest market by investment volume in Europe, behind the United Kingdom, which recorded €6.83 billion in investments in 2024—an increase of 157% compared to the previous year.
Overall, hotel investment across Europe reached €21.9 billion—the highest level since 2019—and represented a year-on-year increase of 47%. This segment, alongside logistics, led the investment rankings, surpassing their respective ten-year annual averages.
Cross-border investment dominated the European market (58.6%), with U.S. private equity funds such as Blackstone and KKR making strong bets in a context where the dollar remains strong against the euro.
Record hotel investment in Spain
In Spain, however, consulting firm Colliers highlights in its report “Hotel Investment 2024” the key role played by domestic investors in the hotel sector, describing them as the main drivers of the market over the past year. Domestic capital represented 58% of total investment, reaching a record €1.938 billion and accounting for nearly three out of every four transactions (73%).
Additionally, the report notes a significant drop in portfolio activity, which played a much smaller role in 2024, representing just 26% of the total investment volume. One of the most notable transactions was the acquisition by Swiss asset manager Partners Group of a majority stake in BlueSea Hotels, valued at €275 million. Meanwhile, individual transactions reached a historic high, totaling €2.452 billion.
Concentration of hotel investment in Spain
The geographic distribution of hotel investment has concentrated in four main areas, accounting for 80% of total investment. The Canary Islands and Madrid top the list with the highest outlays:
- Canary Islands played a leading role in 2024 investments, with 20 transactions totaling €664 million.
- Madrid, with €605 million across 19 transactions, is positioned as one of the main destinations for investment in these assets. The largest deal in the capital was the €200 million acquisition of Hotel Miguel Ángel by the Lopesan chain.
- Barcelona followed closely with €572 million and 21 transactions, including major deals such as the €80 million purchase of the AC Barcelona Forum hotel.
- Balearic Islands, while last among key regions, closed the year on a high note, with over 20 transactions and total investment of €553 million. The purchase of the Six Senses establishment for €200 million stood out as the largest acquisition in the archipelago.
Outlook for 2025
Colliers forecasts that the strong performance of the hotel market in 2025 could present a major opportunity for investors. This dynamism is expected to result in an investment volume of around €3 billion, in line with the positive trend of the past five years.
Regarding this year’s market performance, Laura Hernando, Managing Director of Hotels at Colliers, stated: “In 2025, we will continue to see a highly diversified profile, although we anticipate that national long-term investors will maintain an active role. Additionally, we expect greater involvement from institutional investors and sovereign wealth funds, as well as a rebound in private equity funds, attracted by the stability and growth potential of our market.”
