Spain's Hotel Sector Sets New Records in 2024: A Year of Resilience and Growth

In a year marked by significant economic and tourism milestones, Spain's hotel sector has once again demonstrated its robust resilience and attractiveness to investors. Here are the key highlights from 2024 that underscore the sector's vitality.

Investment and Transactions

The hotel sector in Spain captured 30% of the total real estate investment in 2024, amounting to €3.35 billion. Although this figure represents a 18.29% decrease from the record €4.1 billion in 2023, it still reflects the sector's enduring appeal. Between 2017 and 2024, the hotel sector has accumulated over €25 billion in investment, solidifying its position as a major focus for investors[1].

Individual deals dominated the market in 2024, accounting for 74% of the total investment with 123 transactions totaling approximately €2.5 billion. Notable transactions included the sale and purchase of prominent hotels such as the Six Senses Ibiza, Hotel Miguel Ángel and Rafael Atocha in Madrid, and the AC Hotel Barcelona Forum. Significant portfolio transactions also took place, including the acquisition of a majority stake in BlueSea by Partners Group and the purchase of the Jewel portfolio by Hyatt[1].

Investor Profile and Market Trends

Domestic buyers led the market, representing 52% of the total volume, doubling their share from 2023. Hotel chains and management companies were the most active investors, accounting for 38% of the total investment. Institutional investors, who dominated in 2023, saw their share drop to less than 25% in 2024, largely due to rising interest rates[1].

The market saw a polarization of investor interest towards luxury and budget hotels, reducing the weight of three- and four-star establishments. Investors maintained a strong preference for 4- and 5-star hotels, which accounted for 45% and 20% of the total investments, respectively[1].

Urban vs. Holiday Segment

The urban segment gained prominence in 2024, accounting for 53% of the capital invested, driven by the trend of transforming offices into hotels, especially in urban centers. This shift was particularly noticeable in the luxury segment, reflecting the high demand for hotel accommodations and the revitalization of older buildings[1].

Key Destinations

Barcelona and Madrid stood out as the most dynamic destinations, each accounting for 18% of the total amount transacted. Malaga followed closely, accounting for 5% of the total investment. These cities continue to attract significant investment due to their strong tourism appeal and infrastructure[1].

Tourism and Economic Impact

Spain's tourism sector continued to thrive in 2024, with the country recording over 94 million international tourists, making it the second most visited country in the world. This influx of tourists contributed significantly to the economy, with international visitors spending over €99 billion up to September, a 16.9% increase from the same period in 2023[2][4].

The hotel sector's operating results in 2024 were equally impressive, with the average daily rate (ADR) reaching €118.8 in November, an 8% increase from 2023, and the revenue per available room (RevPAR) standing at €83.16, a 10% increase from the previous year[1].

Conclusion

The year 2024 has been a testament to the hotel sector's resilience and attractiveness in Spain. Despite some fluctuations in investment levels, the sector remains a cornerstone of the country's economy, driven by strong tourism numbers and strategic investments. As Spain continues to position itself as a global leader in sustainable tourism, the hotel sector is poised for further growth and innovation.