The hotel sector has consolidated its position in 2024 as one of the real estate segments of greatest interest, capturing 30% of total investment in the real estate sector, with a volume of 3.35 billion euros, according to CBRE data.
The 2024 figure represents a decrease of 18.29% compared to the record registered in 2023, when investment reached €4.1 billion, the second highest figure in the historical series, only surpassed by 2018, with €5 billion. Between 2017 and 2024, the hotel sector has accumulated more than €25 billion in investment in Spain, positioning itself as one of the main focuses of interest for investors.
In 2024, individual deals have dominated the market, representing 74% of total investment, with 123 transactions totalling approximately €2.5 billion. This performance contrasts with 2023, when large portfolio transactions were predominant. Among the most notable transactions of the year were the sale and purchase of the Six Senses Ibiza, Hotel Miguel Ángel and Rafael Atocha hotels in Madrid, Labranda Suites Costa Adeje and Iberostar Las Dalias in Tenerife, and AC Hotel Barcelona Forum in Barcelona.
Despite the predominance of individual transactions in 2024, there were also significant portfolio transactions. These included the acquisition of a majority stake in BlueSea by Partners Group, the purchase of the Jewel portfolio by Hyatt, which includes three hotels in Tenerife, and the acquisition by Banco Santander of a stake in a Meliá portfolio with hotels in Tenerife and Menorca. In addition, the Catalonia Group has acquired two Vincci hotels located in Barcelona and Malaga.
In terms of the origin of the investment, domestic buyers led the market, representing 52% of the total volume, doubling their share compared to 2023. By investor profile, hotel chains and management companies topped the volume, with 38% of the total. Institutional investors, which accounted for more than 70% of investment in 2023, represented less than 25% in 2024, in a context marked by rising interest rates.
During the year, more than 180 hotel assets were transacted in Spain, totalling more than 17,000 rooms. Investors maintained their preference for 4- and 5-star hotels, which accounted for 45% and 20% of the total invested, respectively. Among the assets in the luxury segment, the hotels in the portfolio of the socimi Millenium Hospitality Real Estate, whose shareholding was recently acquired by Sancus Capital, stand out.
In 2024, the polarisation of investor interest towards luxury and budget hotels has reduced the weight of three- and four-star establishments in the market. Between the first two segments, they accounted for approximately one third of the total volume transacted in the hotel sector during the year.
Investors maintained their preference for 4- and 5-star hotels, which accounted for 45% and 20% of total investments.
In terms of asset type, the urban segment gained prominence in 2024, accounting for 53% of the capital invested compared to 47% for the holiday segment. This change compared to 2023 has been driven by the growing trend to transform offices into hotels, especially in urban centres, with a prominent focus on assets destined for the luxury segment. These changes in use respond to the high demand for hotels, which is focused on the revitalisation of more obsolete buildings.
Among the most dynamic destinations, Barcelona and Madrid stood out, each accounting for 18% of the total amount transacted, followed by Malaga, which accounted for 5%.
Gustavo Cumella de Montserrat, Director of Hotels at CBRE, points out that ‘2024 has once again demonstrated the excellent dynamism and consolidation of the hotel sector not only as a key industry in our country, one of the most visited in the world, but also as one of the most attractive products for investors. He highlighted the great prominence of hotel groups and chains, whose intense investment activity has been driven by a lower cost of capital and high liquidity after two years of record operating results’.
The hotel sector's operating results in 2024 reflect the dynamism of hotel and tourism activity in Spain. In November, ADR (average price per occupied room) reached €118.8, an increase of 8% compared to 2023, while RevPAR (average revenue per available room) stood at €83.16, an increase of 10% compared to the previous year.
