Hotel investment posts its second-best year, with 194 transactions in 2025
Hotel investment in Spain remained strong in 2025, reaching its second-best historical record, with ?4.275 billion mobilized through 194 transactions, including the sale of existing hotels, conversion operations, and land acquisitions for new developments. This is according to the 2025 Hotel Investment Report in Spain, prepared by Colliers, which attributes the dynamism of the year to both the momentum of domestic investors and the growing importance of vacation rentals.
Over the last five years, the Spanish hotel market has attracted nearly ?18 billion, consistently exceeding ?3 billion per year. In this context, 2025 is once again above the ?4 billion threshold, a barrier that, according to the report, has only been exceeded in specific years such as 2018 and 2023, in addition to the record reached in 2024.
EXISTING HOTELS
The main volume of investment was concentrated in existing hotels. Colliers estimates that 159 transactions were closed on this type of asset, totaling 21,767 rooms and an aggregate volume of ?3.986 billion, 30% more than the ?3.064 billion recorded in 2024.
Added to this market were 19 conversion and change of use transactions for a total amount of close to ?160 million, as well as 16 land transactions for new hotel developments, valued at ?130 million.
NATIONAL CAPITAL
The report highlights the strong role played by national investors, who accounted for 72% of transactions and concentrated 63% of the capital invested, equivalent to ?2.673 billion.
Within this group, hotel chains set a milestone by signing 42 transactions worth ?1.384 billion, the highest historical record for this investor profile. Private investors, for their part, closed 67 transactions, representing 48% of the national volume.
Internationally, investment amounted to ?1.602 billion, with French funds leading the way, allocating ?345 million to the acquisition of hotel assets in Spain.
HOLIDAY SEGMENT IN THE LEAD
By segment, the holiday segment once again dominated, accounting for 55% of total investment, with ?2.336 billion, although the urban segment recorded more transactions: 112 assets, compared to 82 for vacation properties.
According to Colliers, the decisive boost in vacation rentals can be explained by the higher average ticket price, influenced in particular by the sale of the Resort Mare Nostrum for ?430 million, considered the largest transaction in Spain's history for a single asset.
In terms of geography, the Canary Islands led for the third consecutive year, with 17 transactions totaling 1.039 billion (24% of the total volume). The Balearic Islands recorded 18 transactions worth ?464 million, a result influenced, according to the report, by the absence of portfolio transactions in the archipelago.
In the urban market, Barcelona was the main investment hub, with 20 transactions worth $712 million (17% of the total) and its second-best historical record. Madrid closed ?376 million in 24 transactions, accounting for 9% of the total, a figure that Colliers attributes to the scarcity of large-volume assets available on the market rather than a lack of interest.
The province of Malaga recorded $309 million, with approximately two-thirds going to vacation assets on the Costa del Sol.
SECONDARY LOCATIONS
Another notable feature of the year was the progress made by secondary markets, which accounted for 32% of the total volume. Notable destinations include the province of Cadiz (?234 million), Valencia (?174 million), and Seville (?164 million).
Colliers anticipates a favorable scenario and an even more diversified investor profile by 2026. In the words of Laura Hernando, Managing Director of Hotels at Colliers, the market is moving towards an "increasingly precise" selection of locations, taking into account factors such as price pressure, product availability, and growth potential.
The consulting firm expects the tone to remain positive thanks to a significant pipeline, more favorable financial conditions, and attractive returns compared to other alternatives, reinforcing Spain's position on the international hotel investment radar.