Covivio, through its subsidiary Covivio Hotels, has completed the purchase of a three-star hotel in Torremolinos, Malaga, for €43.5 million. Located near the beach and the town centre, situated between Málaga and Marbella and 6.4 kilometres from Spain’s fourth busiest airport, the property was refurbished in 2023.
The asset has 440 rooms spread over a total area of approximately 22,900 sqm and it features a lobby with a bar, a digital check-in area, a reading corner, workspaces, a restaurant, a coffee corner, a swimming pool with a sun terrace and a bar, as well as a gym. The hotel also has two retail units representing additional revenue potential.
Covivio has signed a 20-year lease agreement with the operating company Fergus Group, which, according to a statement issued by the company, “guarantees a minimum rental yield of 7.1% and a target yield of over 8%, including variable rent”.
The hotel will be aligned with the CRREM 2030 (Carbon Risk Real Estate Monitor) framework, and the installation of a technical building management system will enable the optimisation of energy consumption and the property’s environmental performance.
Under the contract signed with Covivio Hotels, the operator has committed to obtaining a recognised certification, such as Green Key, and to continuing to improve its environmental performance, including reducing the establishment’s carbon footprint.
The group is strengthening its position in the sector and, more specifically, in the Costa del Sol market. Torremolinos recorded 5.4 million overnight stays in 2025 (+17% compared to 2015) and, thanks to its climate, has limited seasonality, according to the company itself.
“This transaction, which follows our recent transactions in Porto and Milan, illustrates Covivio’s strengthening position in the hotel sector, and more specifically in Southern Europe. We are targeting high-potential assets located in dynamic leisure destinations where we aim to create long-term value. This deal also launches a new partnership with one of Spain’s leading hotel operators, opening new growth opportunities in the local market”, said Tugdual Millet, CEO of Covivio Hotels.
