The figure marks a record first half of the year and reinforces the attractiveness of the Spanish hotel market for hotel operators, REITs, investment funds and private investors, particularly in premium assets and established tourist destinations.
Most transaction activity focused on existing hotels, which attracted €2.078 billion in investment. Assets earmarked for conversion accounted for €101 million, while investment in land for new hotel developments reached €281 million.
Another indicator of the sector's strength is the average price per room, which has climbed to a record €213,300. This figure is more than double the level recorded a decade ago and reflects the growing significance of high-quality assets, as well as investor appetite for locations with strong tourism demand and solid operational fundamentals.
By segment, the market remains clearly focused on holiday properties, which accounted for 60% of total investment, compared with 40% for urban hotels. This trend reflects the stronger growth potential of leisure destinations and their ability to attract international demand.
Capital also continues to flow into the upper end of the market. Five-star hotels represented 51% of total investment volume, while four-star establishments accounted for a further 35%, highlighting the prominence of premium and luxury assets.
Geographically, the Balearic Islands led Spain's hotel investment market with €577 million, equivalent to 23% of the total. They were followed by the Costa del Sol with €435 million (18%) and the Canary Islands with €363 million (15%). Madrid and Barcelona, meanwhile, accounted for a combined €562 million, also representing 23% of total investment, with Madrid leading among the country's major cities.
The first half of the year also showed a shift in transaction types. Single-asset deals gained ground and accounted for 82% of total investment volume, while portfolio transactions fell to a record low of 18%.
According to Colliers, this change reflects both the limited availability of large hotel portfolios and the growing prominence of hotel operators and private investors, which are increasingly gaining market share at the expense of large institutional funds.
Domestic capital-led activity during the first six months of the year accounted for 62% of total investment volume, reinforcing its role in the Spanish hotel market.
Notable transactions included the acquisition of land for the future Four Seasons Marbella, the sale of a 50% stake in Four Seasons Madrid, Palladium's repurchase of Azora's 75% stake in their joint venture, and Calena's acquisition of a three-hotel portfolio from HI Partners. Deals involving landmark assets such as Tivoli La Caleta and Ocean House Torremolinos also stood out.
According to Gonzalo Gutiérrez, Managing Director of Hotels at Colliers, "the first half of the year delivered the strongest investment figures on record, once again demonstrating the depth and liquidity of the market."
The consultancy expects conditions to remain favourable during the second half of the year and does not rule out hotel investment exceeding the €4 billion mark once again in 2026.
Custodio Pareja
