Hotel investment hits records in 2025 driven by the Canary Islands, Barcelona and Madrid

Hotel investment in Spain is close to record figures in 2025. The year closed with 4,275 million euros invested and 194 transactionswhich places him in the second best historical recordonly behind the highs reached in 2018 and 2023, according to Colliers’ annual report. Beyond the aggregate data, the market behavior confirms the trend observed years ago: the hotel sector is consolidated as the main destination of capital within commercial real estateconcentrating approximately one in every four euros invested in the industry.

The report published this Monday puts the hotels in operation at the center of investments with 159 transactions that totaled close to 4 billion euros30% more than in 2024. Repositioning operations, with a volume close to 160 million euros in 19 transactions and, additionally, 16 land operations for hotel developments were closed for a total of 130 million euros.

National investors were largely to blame for these data, responsible for 72% of the operations and 63% of the total volume invested, with 2,673 million euros. Within this group, the hotel chains were especially active, reaching their best historical record in terms of investment, while the rest of the private investors have maintained their prominence with 67 operations representing 48% of the total national volume. On the other hand, international capital maintained a significant presence, with 1,602 million euroshighlighting the interest of French investors, who led foreign investment in hotel assets in Spain during the year.

After the adjustment observed in 2024, the vacation segment regained leadership as the main recipient of investment, concentrating the 55% of total volumecompared to 45% in urban areas. This recovery is explained, to a large extent, by the greater average size of operations, influenced by singular transactions such as the sale of the Mare Nostrum Resort (Tenerife)which marked a milestone in the Spanish market. The urban segment, however, registered a greater number of operations, which shows a sustained interest in this type of assets, although conditioned by the availability of high-volume products in certain places.

On a geographical level, Canary Islands once again led hotel investment for the third consecutive year, with 1,039 million eurosfollowed by Barcelonawhich reached 712 millionhis second best historical record. Madrid presented a more moderate volume, with 376 million eurosin a context marked by the limited supply of large assets in the market. Along with traditional destinations, the exercise once again showed a growing interest in secondary locationswhich already account for close to a third of the invested capital, with special prominence in provinces such as Cádiz, Valencia or Seville.

Favorable outlook for 2026

Looking ahead to 2026, the report points to a scenario of continuity. The combination of solid tourism demand, a supply that is growing in a contained manner and foreseeably more favorable financial conditions create a stable environment for investment. “With more favorable financial conditions, a relevant operations pipeline and attractive profitability compared to other alternatives, We hope that 2026 will maintain a positive tone in investment activity. Our hotel market has matured, demonstrating its liquidity and continues to lead real estate investment supported by dynamics that go beyond the current situation. Spain will undoubtedly occupy an increasingly relevant position on the radar of international hotel investment,” highlights Laura Hernando as managing director of hotels in Colliers.