Spain hotel investment reached €4.23bn in 2025—second-highest on record—driven by Spanish hotel chains, luxury demand and strong bank and fund financing. 2026 outlook positive.
Spain’s hotel sector is entering a fresh wave of investment after a near‑record 2025, with buyers drawn by booming tourism, high returns in the luxury segment and broad access to debt and equity financing.
According to CBRE, hotel transactions in Spain reached €4,228 million in 2025—about 23% of total commercial real estate investment and 27% higher than the prior year. That tally makes 2025 the second‑largest year for hotel investment in Spain, trailing only 2008 when Blackstone acquired Hispania. Southern Europe, with Spain at the forefront, continues to be a preferred destination for global hotel capital thanks to the combination of strong tourist and urban markets.
Spanish groups played an outsized role: national investors accounted for 64% of the volume—up from 57% in 2024 and the highest share seen in the past five years. Hotel operators themselves were especially active, representing roughly 39% of investor activity and responsible for about a third of hotel purchases. The luxury segment was a primary driver of demand, supporting higher transaction values.
Why are Spanish operators dominating? Industry observers point to strategy and time horizon. Family‑led hotel groups tend to plan generation‑to‑generation and prioritize long‑term value, while private equity frequently targets shorter holding periods and IRR optimization. That patient, operator‑led approach has translated into stronger appetite for acquiring domestic assets—often assets that were sold in prior cycles and are now being repurchased by their former operators.
Financing is abundant and varied. Banks report closer, more professionalized relationships with hotel operators than a decade ago, focusing due diligence on asset performance, trading history and location. At the same time, alternative capital providers such as fund managers are active. Castlelake, for example, holds an equity position through the REIT Hotei (formerly Millenium) and continues to participate in the market via debt financing.
Market participants stress that the current dynamic isn’t simply a result of opportunistic buyers. The sector’s improved professionalism—greater financial transparency, stronger operating metrics and clearer risk assessments—has increased lenders’ comfort and helped structure more sophisticated deals. As one market summary put it, the Iberian market’s mix of urban and tourist product makes it uniquely attractive compared with other core European markets.
Looking ahead, sentiment remains constructive for 2026. Tourism figures are at record levels and asset yields remain appealing for operators and institutional capital alike. While some international investors regret not entering the market earlier, many expect operators and domestic groups to remain the dominant buyers in the near term, supported by both bank lending and fund structures.
In short, Spain’s hotel market is enjoying momentum: high tourist demand, strong luxury performance, proactive Spanish operators and ready financing are combining to keep hotel investment elevated into 2026.
