According to the report, hotel investment in Spain reached a total volume of €3.3bn in 2024. The Spanish hotel market was driven by domestic capital, which accounted for 59% of total investment, positioning Spain as one of the most important hotel markets in Europe.

The analysis reveals that 51% of the assets transacted were concentrated in the urban segment, with secondary urban destinations registering a volume of investment in excess of €200mn. Barcelona and Madrid continued to be the main players in the urban segment, while the Balearic Islands dominated the holiday segment.

In terms of investor profile, hotel groups made up 38% of the total investment volume. Investment managers and companies were more conservative compared to the previous year, making it 32% compared to 82% in 2023. Meanwhile, family offices and private investors increased their interest in significant hotel assets, reaching 30% of total investment.

The four-star category was once again the most attractive asset class, accounting for 58% of total investment. Meanwhile, there is growing investor interest in two- and three-star hotels, which accounted for 28% of the total number of rooms transacted.

Looking ahead to the year, Alberto Martín, Christie & Co's Associate Investment Director in Spain and Portugal, states, 'From an operational perspective, the sector expects another year of record results across all indicators, continuing the overall trend into 2024. This is in line with the trend in the sector and the fall in interest rates will intensify investment interest in hotel assets, so the €3.3 billion volume we saw last year is expected to be repeated.'

Nicolas Cousin, Managing Director of Christie & Co in Spain and Portugal, adds, ‘Already established as a European leader in tourism revenues, Spain is positioning itself as a favorite destination for investors, with more than €3.3bn dedicated to hotel acquisitions. This year has seen significant activity from hotel operators and groups, who are taking advantage of their healthy balance sheets to re