Hotel investment in Spain recorded its second-best year in history

A total investment volume in the hotel sector of EUR 4,052 M was recorded in 2023, exceeding EUR 3,000 M for the third consecutive year and positioning it as the second best year ever, a figure only surpassed in 2018 due, among other transactions, to the sale of the Hispania portfolio. The nearly 21,630 rooms transacted reached an average récord price of EUR 187,000, 10% higher than 2022.

These are the main conclusions of the report by Christie & Co, an international consultancy specializing in the hotel sector, has published its annual analysis of investment in Spain for 2023, which reflects key market activity, trends and challenges in 2023, and forecasts what 2024 could bring for the hotel real estate sector.

The analysis of investment destination indicates that 67% of the assets transacted were concentrated in the holiday segment. Madrid, Barcelona and Málaga continued to be the main protagonists in the urban area, while the Canary Islands were the main players in the vacation segment.

In terms of investor profile, the management and investment firms were once again the main players in 2023, with 82% of the total volume invested. Hotel groups were more conservative compared to the previous year, with 11% compared to 25% in 2022. Family offices and private investors remained in line with the previous year and accounted for 7% of total investment.

The four-star category was once again the favorite among transacted assets, with 65% of total investment. Regarding the origin of the investment, éit was mostly international, accounting for 78% of the total invested in Spain in 2023, largely due to the fact that the main portfolios and individual assets with the highest volume were acquired by international investors. 

With regard to the outlook for the year ahead, Alberto Martín, associate investment director at Christie & Co in Spain ña and Portugal, augurs: “The first quarter of 2024 will exceedá the investment volumes obtained in that of 2023, encouraged by the year-end trendño, current transactions in the final stages of closing and strong interest from international investors, although greater prominence is expected from domestic investors in 2024.

Nicolas Cousin, managing director of Christie & Co in Spain ña and Portugal, added: “Spainña is consolidating as one of the most attractive hotel investment markets in Europe. Although the main destinations have been the main focus of investment, we are noticing a growing interest on the part of investors and hotel chains in provincial capitals and secondary destinations.