Spain’s hotel investment market continues to attract strong investor interest and is on track for another record-breaking year. According to Cushman & Wakefield’s estimates for the first half of the year, hotel investment exceeded €2.53 billion between January and June, a figure that could accelerate further during the second half of the year thanks to several large-scale transactions currently underway. This represents a 36% increase compared with the €1.856 billion recorded in the first half of 2025.
Following a record-breaking 2025, which closed with more than €4 billion invested in hotel assets, market prospects suggest this benchmark could be surpassed in 2026. According to Luis Arsuaga, Head of Capital Markets and Co-Head of Cushman & Wakefield Hospitality in Spain, “the strong performance of the tourism sector continues to be the main driver for investors. Spain is consolidating its position as one of the world’s most attractive tourist destinations, boosting interest in both luxury assets and value-add repositioning opportunities. We are also beginning to see core-plus transactions, offering lower risk and therefore lower returns.”
Balearic and Canary Islands account for 48% of transaction volume
Alongside the sustained growth of leisure destinations, cities are also performing strongly, with markets such as Madrid continuing to gain prominence among international investors and accounting for 18% of total investment nationwide.
The islands once again emerged as the leading investment destination in 2026, accounting for 48% of total transaction volume, with the Balearic Islands representing 27% of total hotel investment in Spain and the Canary Islands 21%. Coastal destinations remain among the market’s most sought-after investment targets, supported by exceptionally strong tourism fundamentals.
In terms of returns, prime yields remain stable at between 5.25% and 5.75%, reflecting a market that remains balanced between supply and demand despite the current economic environment.
Economy hotels and secondary locations attract investors seeking value appreciation
The transactional market in the first half of the year confirmed a trend already emerging at the end of 2025, with renewed investor interest in economy hotels outside major urban centres and in secondary destinations. This appetite is largely driven by the search for higher returns, as the elevated pricing of luxury assets and prime destinations makes new acquisitions increasingly challenging.
According to Bruno Hallé, Partner and Co-Head of Cushman & Wakefield Hospitality in Spain, “the strength of tourism demand and the quality of assets coming to market continue to keep investor interest at very high levels. In this context, hotel operators are once again positioning themselves as buyers of hotel assets, reversing the previous asset-light trend.”
Key transactions in the first half of the year
Among the standout transactions between January and June was Calena Partners’ acquisition of three hotels from HIP for €200 million. Two of the assets are located in Mallorca: Barceló Ponent Beach and Fergus Style Tobago, while the third, Corallium Beach by Lopesan, is located in Gran Canaria. Together, the three properties comprise 870 rooms.
Another notable transaction was Arcano Partners’ acquisition of three assets in Tenerife: Alua Atlántico Golf Resort, Alua Tenerife, and Alua Soul Orotava Valley, totalling more than 1,050 rooms. During the second quarter, another significant Tenerife deal was the acquisition of Tivoli La Caleta, valued at €140 million.
Overall, 88 hotels and a total of 12,200 rooms changed hands in Spain during the first half of 2026, highlighting the continued strength and liquidity of the country’s hotel investment market.
