We review investment activity in Spain's hotel and restaurant sector during 2024: volumes, trends, notable transactions, and outlook.
Spain’s hotel sector has experienced one of its most active investment years in 2024. The combination of record tourist demand figures, the normalisation of financing conditions, and appetite from both domestic and international investors has generated a significant volume of transactions that positions Spain firmly among Europe’s most attractive hospitality investment markets.
Spain surpassed 85 million international tourists in 2024, consolidating its position as the world’s second-largest tourist destination. Tourism revenues exceeded 100 billion euros, and the principal hotel indicators — RevPAR, ADR, and occupancy — reached historical highs in the majority of destinations. These figures, combined with a cost of financing that moderated in the second half of the year, have created a favourable environment for hotel investment.
Hotel investment in Spain during 2024 is estimated at over 3.5 billion euros, representing a 15-20% increase over 2023. This figure includes both hotel asset acquisitions and investment in renovation and repositioning.
By investor type, hotel chains accounted for approximately 35% of volume, driven by expansion and consolidation strategies. Investment funds and private equity represented 30%, with growing interest in hotel platforms rather than individual assets. Family offices contributed 15%, focused on quality assets in premium locations. Institutional investors such as SOCIMIs and REITs accounted for 12%, while international investors — with increasing presence of Middle Eastern and Asian capital — represented 8%.
By segment, the resort vacational category was the most active, driven by the strength of international tourism and the scarcity of new supply in the most established destinations. The premium urban segment in Madrid and Barcelona showed significant activity, with elevated multiples justified by sustained demand. The lifestyle and boutique segment is booming, with smaller transactions but attractive multiples. The budget and economy segment saw less activity, penalised by margin pressure in the most price-sensitive segment.
Geographically, the Balearic Islands led investment volume, followed by the Canary Islands and the Costa del Sol. Madrid was the most active urban market, with Barcelona seeing a significant recovery in investment activity after years of regulatory uncertainty.
Repositioning continues to dominate over new construction, as regulatory barriers and construction costs make renovation of existing assets a better risk-adjusted proposition. Platform consolidation remains a key theme, with investors seeking to create hotel platforms with shared management rather than acquiring individual assets — synergies in operations, tour operator and OTA negotiation power, and geographic diversification justify a premium over individual assets.
Sustainability has transitioned from a complement to a requirement. Investors demand environmental certifications, energy efficiency plans, and carbon footprint reduction strategies as conditions for investment. Assets failing to meet these standards sell at a discount. Hotel technology investment — in revenue management, guest experience, and digitalised operations — has become a significant component of investor capex.
Investment multiples in Spain in 2024 ranged from 4-5% yields for premium resort and urban assets (equivalent to 13-18x EBITDA) down to 7-9% yields for budget and economy assets (equivalent to 8-11x EBITDA). In the middle-market, where assets tend to be in secondary locations and require investment, multiples are significantly more attractive.
Blue Mountain maintains its hospitality investment focus on middle-market assets with repositioning potential. We do not compete for trophy assets in Balearic prime beachfront locations, where prices reflect buyer competition that does not interest us. Our focus is different: hotels in quality locations needing investment, professionalised management, and a refreshed concept.
The Spanish hospitality sector enters 2025 with the most solid fundamentals in its history: record tourist demand, limited supply due to regulatory barriers, growing management professionalisation, and a financing framework that, while more demanding than in the zero-rate era, is functional. For the patient investor who understands hospitality, Spain remains one of the world’s most attractive markets.
By Blue Mountain Capital
By Blue Mountain Capital
By Blue Mountain Capital
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