More Than $1 Billion in Hotel Investment Targeted for the Canary Islands in 2025

Canary Islands and Barcelona Account for 41% of the Investment, Again Focused on Leisure

The Canary Islands have led hotel investment for the third consecutive year, recording 17 transactions worth €1.039 billion in 2025. This represents 24 % of Spain’s total hotel‑investment volume, which reached €4.275 billion across 194 transactions.

The figures come from the Hotel Investment Report in Spain 2025 prepared by Colliers, which includes existing hotels, properties slated for conversion to hotel use, and land for new developments.

Across the country, investment has been concentrated on existing hotels, with 159 transactions covering 21,767 rooms and an aggregate value of €3.986 billion—a 30 % increase over the €3.064 billion recorded in 2024.

Conversions to hotel use remained significant, amounting to ≈€160 million across 19 transactions, while 16 land deals for hotel developments added another €130 million.

In the last five years, Spain’s hotel market has attracted over €18 billion, consistently surpassing the €3 billion annual mark. 2025 stands as the second‑best historical record, breaking the €4 billion barrier—previously achieved in 2018 and 2023.

National Investors Lead with 72% of Transactions

Domestic investors have been the main drivers, accounting for 72 % of all transactions in 2025. For the second year running, local investors have been the outright leaders, contributing 63 % of total investment (€2.673 billion).

Among national investors, hotel chains stand out, having signed 42 deals worth €1.384 billion, marking their best historical performance.

Private domestic investors also maintained a strong presence with 67 transactions, representing 48 % of the national volume. International investors accounted for 37 % of the total (€1.602 billion), with French funds leading the way, allocating €345 million to acquire hotel assets in Spain.

After a brief dip in 2024, the preference for the leisure segment has returned, capturing 55 % of total hotel investment (€2.336 billion). The urban segment, however, recorded more transactions—112 assets versus 82 in leisure.

The decisive boost for the leisure segment came from the largest single‑asset deal in Spanish history: the sale of the Resort Mare Nostrum for €430 million, which lifted the average transaction ticket.

Canary Islands Lead Spending

For the third consecutive year, the Canary Islands top hotel investment with 17 transactions worth €1.039 billion, securing a 24 % share of the national total.

The Balearic Islands posted a similar number of deals (18) but with a lower volume of €464 million, reflecting the lack of portfolio sales in the Mediterranean islands.

In the urban segment, Barcelona leads with 20 transactions totaling €712 million (17 % of total investment) and records the second‑best historic performance. Madrid trails with €376 million across 24 transactions, representing 9 % of the total—a result Colliers attributes “primarily to the scarcity of large‑volume assets on the market rather than a lack of investor interest.”

The province of Málaga attracted €309 million in investment, two‑thirds of which went to leisure assets on the Costa del Sol.

Finally, 2025 shows growing interest in secondary regions, which together accounted for 32 % of total investment. Notable provinces include Cádiz (€234 million), Valencia (€174 million), and Seville (€164 million).

Outlook for 2026

Spain’s hotel industry enters 2026 from a position of strength. Colliers notes that, despite complex macro‑economic conditions, the sector has demonstrated a remarkable ability to sustain operational performance, “supported by solid and increasingly diversified tourist demand and a supply that continues to grow in a controlled manner.”

The investor profile is set to diversify further. National patrimonial investors—both hotel groups and family offices—are expected to remain active, leveraging price competitiveness and long‑term strategic vision.

A greater presence of institutional investors, sovereign wealth funds, and even retail investors through dedicated vehicles is also anticipated, attracted by the market’s stability, depth, and growth potential.

“With more favorable financial conditions, a relevant pipeline of transactions, and attractive returns compared with other alternatives, we expect 2026 to maintain a positive tone in investment activity,” concludes Laura Hernando, head of the hotel division at Colliers.