Spain had the most hotel investments in Europe in 2024: Experts say focus will move to 'second' cities that are less saturated by tourists - CSN

Spain will have the highest hotel investment in Europe by 2024. Experts predict that focus will shift to cities with a lower tourist density.

Louise Brown February 18, 2025 Travel Leave a comment

SPAIN has cemented its position as Europe’s hottest hotel investment market as €3.3 billion poured into the sector during 2024, although down from 2023’s €4 billion.

Madrid and Barcelona remained key players, securing €589 million and €572 million respectively, but it’s the country’s secondary cities that are increasingly catching investors’ eyes, according to consultancy Christie & Co.

The Balearic Islands emerged as a particular powerhouse, attracting €679 million in investment, outperforming the second-place Canary Islands’ €598 million.

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The surge in island investments highlights the increasing appetite for premium holiday locations among international tourists as well as investors. Foreign investors account for 40% of all transactions.

“We’re seeing a significant shift in focus,” explained Alberto Martin of Christie & Co.

While Madrid and Barcelona are still attracting investment, secondary city hotspots are now the new places for investors to look for promising repositioning options.

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Luxury properties dominated the market with 70% of room transactions coming from four- and five-star hotels. This reflects a shift in accommodation preferences following the pandemic.

Several headline-grabbing deals marked 2024, including the €200 million acquisition of Madrid’s Miguel Angel Hotel by Stoneweg and Lopesan, while the prestigious Six Senses Ibiza changed hands in another major transaction.

Looking ahead to 2025, experts predict investment levels will remain robust, staying above the €3 billion mark.

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The hospitality industry in Spain is expected to grow at a rapid pace, with secondary cities and islands destinations leading the way.

The trend of individual asset purchases (which accounted for 75% of transactions) suggests that the market is more accessible to private investors and family offices than only large corporations.