Three Key Aspects of Hotel Investment
Spain is currently the second most attractive tourism market in the world for the
Spain continues to break tourism records. In 2023, it welcomed over 85 million international visitors, surpassing pre-pandemic highs, and it is expected to exceed 90 million arrivals in 2024. With consistent demand growth and increasing per capita spending by tourists, Spain is on the verge of becoming the world’s number one tourism destination, potentially overtaking France.
On the investment front, the Spanish market has ranked consistently top 3 in Europe and top 5 globally in terms of volume, with increasing interest from both domestic and international investors. Nationwide, hospitality remains the most attractive real estate vertical segment.
Despite the appeal, securing hotel assets in Spain is not easy. With so much capital chasing limited inventory, the competition is fierce, especially in top-tier urban gateways and in classic holiday destinations: Madrid, Barcelona, Valencia, Málaga, the Balearic Islands, Costa del Sol, etc.
In terms of timing, for investors unfamiliar with the local market, patience and preparation are key. Successful acquisitions often take several months of groundwork, networking, and due diligence. To try to minimise the scouting and bidding phases, it is strongly recommended to reach out to as many industry actors as possible with our specific acquisition requirements: hotel consultants, brokers, architects and lawyers. In this way, we will maximise our network of contacts and exposure to market intelligence. The largest international hotel brokerage and consulting firms operating in Spain include Cushman & Wakefield | Hospitality , Horwath HTL, Catella Spain, Colliers, Savills España, CBRE, Deloitte, Christie & Co and JLL.
However, the tremendous imbalance between an increasingly large investment appetite and a high scarcity of assets at the right price, require a carefully planned approach to navigate this market successfully.
Source: CBRE, Colliers, JLL, INE, UN Tourism.
Once a property has been identified, running a professional market and feasibility study of the asset will be the most critical task of the entire acquisition process. This work will determine the right market value for the asset and the value generation opportunity associated with the deal.
It is crucially important to choose an experienced and independent hotel advisory firm that not only understands your investment objectives, risk tolerance, and return expectations, but can also guide you with a clear and objective analysis.
Your chosen hotel consulting firm should be able to provide introductions to a broad network of third-party advisors that might be relevant throughout the asset management plan such as lawyers, urban planning experts, architects, hotel brands, hotel management companies, interior designers, FF&E suppliers, landscaping experts, banks, alternative lenders, ensuring the entire acquisition and asset management process is covered.
Once the acquisition has been completed, execution becomes everything. Whether your goal is long-term asset retention or a value-driven exit in the medium term, staying aligned with your original business plan is essential.
For this reason, engaging a hands-on hospitality advisor throughout the lifecycle of your investment can help you stay disciplined, make informed decisions, and navigate the operational specificities of hotel ownership. Ultimately, the two key metrics to monitor closely are asset appreciation and return on investment growth.
All in all, for investors looking to put excess capital to work in a sector that offers both income and appreciation potential, Spanish hotel assets present a compelling opportunity. But success in this market comes from a strategic approach, expert industry knowledge, and staying focused on long-term value creation.
