Spain is positioned as one of the most relevant hotel markets in Europe

A total investment volume of 3.3 billion euros will be registered in the Spanish hotel sector in 2024, largely driven by domestic capital, which represents 59% of total investment. Spain has positioned itself as one of the most relevant hotel markets in Europe, according to the latest report by Christie & Co.

 

The analysis of the destination of the investment indicates that 51% of the assets transacted were concentrated in the urban segment, with secondary urban destinations recording an investment volume of over ?200 million. In this regard, Barcelona and Madrid continued to be the main players in the urban sector, while the Balearic Islands were the main players in the holiday segment.

In terms of investor profile, hotel groups were the main players in 2024, with 38% of the total volume invested. Management and investment firms were more conservative compared to the previous year, with 32% compared to 82% in 2023. Meanwhile, family offices and private investors increased their interest in hotel assets significantly, reaching 30% of total investment.

The four-star category was once again the most attractive among the assets transacted, with 58% of total investment. On the other hand, there is evidence of growing investor interest in 2- and 3-star hotels, which accounted for 28% of the total number of rooms transacted.

With regard to the outlookfor the coming year, Alberto Martín, investment director of Christie & Co in Spain ña and Portugal, predicts that “the sector expects to mark another year of strong results in all its indicators, following the trend it has set in 2024. The drop in interest rates will intensify investor interest in hotel assets.

Nicolas Cousin, managing director of Christie & Co in Spain and Portugal, adds that “Spainña is positioning itself as one of the favorite destinations for investors. During this year, there has been notable activity on the part of hotel operators and groups, who are taking advantage of their healthy accounts to reinvest in strategic assets.