Hotel investment in Spain reached €2.46 billion in the first half of 2026, up 26.5% on the previous year and the highest first-half investment volume recorded by Colliers.
Beyond this record, the first half reveals a clear trend: capital is increasingly concentrated in higher-category properties. Four- and five-star hotels accounted for 86% of total investment, with €2.108 billion spread across 55 transactions.
That does not mean every high-end hotel is automatically a good investment. Location, acquisition price, repositioning potential and, above all, the quality of operations remain decisive.
86% of capital flows into four- and five-star hotels
Five-star hotels accounted for 51% of total investment, at €1.25 billion, while four-star hotels represented a further 35%, at €858 million.
Together, the two categories attracted €2.108 billion, confirming the growing preference for higher-quality assets.
This investment mix also pushed the average price per room to record highs. However, the figure should be interpreted with caution: a higher average does not mean that all hotels have appreciated equally. It also reflects the greater share of transactions involving high-value properties.
Moreover, hotel category is only one part of the equation. A five-star hotel may be a stabilised asset, but it could also require refurbishment, a change of operator or repositioning. A hotel’s star rating and its investment strategy are not the same thing.
Resort hotels lead again
The resort segment accounted for 60% of transaction volume, with €1.481 billion, compared with 40% for urban hotels.
This continues a trend already visible in previous years and reflects interest in established destinations where there is potential to refurbish properties, improve management or upgrade their positioning.
In these markets, value creation does not necessarily come from increasing the number of rooms. It can be achieved through refurbishment, rebranding, operational improvements or upgrading the hotel’s category.
The Balearic Islands were the leading investment destination during the first half of the year, attracting €577 million, or 23% of Spain’s total. This exceeds the €464 million recorded throughout 2025.
The Costa del Sol ranked second, with €435 million, followed by Madrid at €397 million and the Canary Islands at €363 million.
More asset-by-asset selection and fewer large portfolios
Another significant feature of the first half was the predominance of single-asset transactions over large portfolios.
According to Colliers, 82% of investment volume came from individual transactions, while portfolios accounted for just 18%.
This reinforces the picture of a market in which capital is seeking specific opportunities rather than indiscriminate exposure to the sector.
It also aligns with the importance of repositioning strategies. A substantial share of investment is directed towards existing hotels, where buyers can make changes to the property, brand, management or operating structure in an attempt to improve performance.
The tourism backdrop helps, but does not explain everything
Investment activity is supported by a tourism environment that remains favourable.
Between January and May 2026, Spain welcomed nearly 36.8 million international tourists, approximately 5% more than a year earlier. Over the same period, tourist spending increased by around 8%.
Spending growing faster than visitor arrivals is particularly relevant for higher-category hotels, which are better positioned to capture a greater share of expenditure from travellers with higher spending power.
However, strong tourism performance does not automatically make every hotel a good investment.
The purchase price, operating costs, refurbishment requirements, market positioning and quality of management can create major differences between properties, even within the same destination.
In hospitality, the property and its operations go hand in hand
This is one of the characteristics that sets hotels apart from other real estate segments.
The value of a logistics warehouse or office building depends largely on the property itself, its location and its lease agreements. In hospitality, there is also an operating business behind the real estate.
Occupancy, average room rates, labour costs, distribution, branding, the operator and guest experience directly influence performance.
That is why two physically similar hotels can generate very different returns.
This operational dimension also helps explain the growing role of hotel chains themselves in acquisitions.
Domestic capital and hotel chains gain prominence
Spanish investors accounted for 62% of total investment, contributing €1.513 billion, compared with €947 million from international capital.
Within domestic investment, hotel chains were the largest buyers, with €792 million, representing 32% of total volume.
For a hotel chain, an acquisition may have a rationale that goes beyond the property investment itself: establishing a presence in a destination, achieving greater scale, improving distribution or generating operational efficiencies.
Private investors, family offices and listed real estate investment companies (SOCIMIs) also participated, while international capital remained active in both stabilised assets and repositioning transactions.
A higher hotel category does not mean lower risk
The concentration of capital in premium hotels may reflect their ability to command higher room rates and benefit from tourism demand among higher-spending travellers.
But a hotel’s category does not eliminate risk.
A high-end hotel may require substantial capital expenditure, depend heavily on a particular brand or suffer if operating costs rise faster than revenues. It can also be affected by changes in demand, air connectivity or regulations in its destination.
That is why analysis must go beyond star ratings and location.
In hospitality, the following factors are particularly important:
- The acquisition price
- The quality of the operator
- The ability to maintain occupancy and room rates
- Future capital expenditure requirements
- The genuine potential for repositioning
A strong market, but an increasingly selective one
Colliers estimates that, if the pace of activity seen in the first half continues, hotel investment in Spain could once again exceed €4 billion in 2026.
The record first half and the concentration of investment in four- and five-star hotels reveal a market with abundant capital, but also more demanding investment criteria.
The main takeaway is not simply that luxury attracts investment. It is that capital is becoming more selective in choosing assets capable of sustaining revenues, improving their market positioning or creating value through management.
In this context, hotel category matters, but it is not enough. Final returns will continue to depend on the purchase price, how the property is operated and the potential to improve its performance.
