260 New Hotels to Open in Spain, 22% High-End

Real estate consulting firm CBRE predicts 260 new hotel openings in Spain this year, with 22% being high-end. Malaga, Madrid, Valencia, and the Canary Islands to see the most growth.

Spain is set to see a significant increase in hotel openings this year, with a total of 260 new hotels expected to open their doors. According to real estate consulting firm CBRE, 22% of these new hotels will fall into the high-end category. The majority of these openings will be concentrated in popular tourist destinations such as Malaga, Madrid, Valencia, and the Canary Islands.

260 New Hotels to Open in Spain, 22% High-End | CBRE Report

Investment in the Spanish hotel sector has been on the rise, with a total of 577 million euros transacted in hotels during the first quarter of 2024. This represents a 12% increase compared to the same period in 2023, with high-category hotels accounting for 82% of the total investment. Four-star assets made up 55% of the volume, while luxury assets(including five-star and five stars GL) accounted for 27%.

The increase in investment has led to a positive outlook for the industry, with around 26,000 new rooms set to be added to the market this year. The first quarter of 2024 saw a total of 28 hotel assets and over 3,000 rooms transacted in Spain, indicating a strong interest from investors.

Institutional investors led the way in terms of investment, with more than 37% of the total volume coming from this group. National investors represented 74% of the total properties transacted, highlighting the confidence in the Spanish hotel market.

The increase in demand, coupled with rising average rates, has resulted in higher operating results for the hotel industry. The average price per occupied room and the average income per available room have both seen significant increases compared to the previous year.

Spain's attractiveness as a destination for hotel investment has been on the rise, with the country leading hotel investment in Europe last year. Madrid has emerged as the second most favorable city for hotel investment, surpassing Paris and trailing only behind London. Barcelona also features in the top 10 most attractive cities in Europe for the sector.

Overall, Spain continues to be a key player in the European hotel market, with strong investment prospects and growing interest from international investors.

The Spanish hotel sector is experiencing a period of growth and investment, with a significant number of new hotels set to open this year. The high-end segment is particularly attractive to investors, and Spain's popularity as a destination for hotel investment continues to rise.