Hotel investment in the Iberian Peninsula reached €2.6 billion during the first half of 2026, 27% more than in the same period the previous year and the highest volume recorded for the first six months of the year, according to data from CBRE. The market was driven by the weight of luxury assets and by activity from both institutional capital and Iberian investors.
Spain accounted for nearly €2.1 billion, representing a year-on-year increase of 18%, while Portugal recorded €512 million following an 82% rise compared with the first half of 2025. Together, the two markets totalled 88 transactions, compared with 74 recorded a year earlier, with more than 10,100 rooms traded – a 9% increase.
The market’s performance reinforces the Iberian Peninsula’s position among the leading hotel investment destinations in Europe. In 2025, it accounted for 19% of the total transaction volume on the continent, compared with 14% in 2020, ranking as the second-largest European market in terms of investment, behind only the United Kingdom.
Jorge Ruiz, Head of Hotels for Iberia at CBRE, believes that the volume achieved during the half-year reflects the strength of the market’s fundamentals and investors’ confidence in the growth potential of Spain and Portugal. He also highlighted that the share of both countries in European hotel investment has increased significantly in recent years, a trend underpinned by growing interest in higher-end assets.
The luxury segment once again accounted for a large proportion of the activity. Five-star and ultra-luxury hotels accounted for 47% of the investment recorded in the region during the half-year, a proportion that reached 85% in Portugal. Among the most significant transactions were the sales of the Hotel Mongibello Ibiza and the Hotel Penha Longa.
By buyer origin, Iberian capital led the market, accounting for around 55% of the investment volume. In Spain, domestic investors clearly predominated, with nearly €1,400 million, while in Portugal, activity was dominated by international buyers. After local investors, French and British buyers were the most active, with investments of approximately €357 and €225 million, respectively.
Institutional investors also remained the leading buyers, accounting for nearly €1.2 billion, equivalent to half the total transaction volume. Hotel chains accounted for 25% of investment, totalling some €681 million, while private investors accounted for 23%.
The breakdown between urban and holiday properties remained balanced, although holiday properties accounted for 52% of investment compared with 48% for city centres. In Spain, the Balearic Islands stood out, with nearly €500 million, representing 24% of the national total, while in Portugal, Lisbon led the way, with around €200 million and 37% of the country’s market.
Looking ahead to the second half of the financial year, CBRE forecasts that the market will maintain its momentum, supported by strong tourist demand, high liquidity and interest in premium assets. According to the consultancy’s European Hotel Investor Intentions Survey 2026, Spain is the most attractive hotel market in Europe for investment, while Portugal ranks fourth.
