Spain is quickly becoming the place everyone wants to invest in when it comes to hotels. According to a new survey by Savills, investors managing more than €1 trillion in property assets now see Spain as Europe’s most attractive destination for hotel investment.
In fact, 73% of those surveyed say they are actively looking to buy in 2026, with plans to keep increasing their exposure to the hotel sector over the coming year.
Southern Europe in focus
Southern Europe continues to attract investor interest. Spain sits firmly at the top, ahead of Italy and Portugal.
Savills links this performance to robust tourism demand, favourable seasonality and limited new supply. As investors take a more selective approach, profitability now drives decisions. Spain continues to meet those criteria.
A very active 2025
Hotels ranked as Spain’s most active real estate asset class in 2025. Transaction volumes exceeded €4.2 billion, marking a 26% rise on 2024.
Domestic capital supported much of this activity. Hotel chains also played a key role as they expanded and upgraded their portfolios.
Investor preferences for 2026
Looking ahead, investors favour luxury and upper-upscale hotels, along with leisure-focused resorts. These segments attract the strongest interest for 2026.
Value-add strategies also remain central. Investors continue to target assets where operational improvements can unlock additional returns.
Stable returns, longer horizons
Return expectations have remained broadly stable over the past year. Most investors expect annual returns of between 6% and 8%, while aiming for internal rates of return above 15% on exit.
More investors are also adopting a long-term view. Instead of pursuing quick exits, many plan to hold assets through the full market cycle, focusing on recurring income and operational strength.
Investment volumes near record levels
Colliers data reinforces the strength of Spain’s hotel market. The firm reports that 2025 was the country’s second-best year on record for hotel investment, behind only 2018.
Spain attracted €4.275 billion in hotel-related real estate investment across 194 transactions. These deals covered operating hotels, conversion opportunities and land for new developments.
Hotel investment in Spain: Outlook for 2026
Colliers expects Spain’s hotel sector to remain resilient in 2026. Continued tourism demand and constrained supply growth should support the market.
Spain is also likely to strengthen its profile with international investors. Institutional capital and sovereign wealth funds will remain active, while domestic hotel groups and family offices increase their presence. Investment vehicles aimed at retail investors are also set to play a larger role.
