Hotel Investment in the Iberian Peninsula

Gonçalo Garcia • 10/10/2019

Cushman & Wakefield and CMS review the hotel investment market across the Iberian Peninsula to understand how it will expand and evolve.

The tourism sector is one of the fastest-growing industries in the world, increasingly capturing interest from investors attracted by the premium returns and positive long-term prospects.

Hotel investment 2018 infographic

This is underpinned by structural trends, including demographic and technological changes, globalisation of trade, rising incomes in emerging markets, enhanced physical and digital connectivity as well as reduced barriers to travel, such as improved visa facilitation.

Many regions have benefited from these trends, including the Iberian Peninsula. As a testament to the region's position as a hotspot for hotel investment, Spain has been ranked by the World Economic Forum as the most competitive country in Travel and Tourism for 5 consecutive years since 2015, while Portugal took 12th place and continues to rise up the ranks.

Hotel investment infographic 2014-2018

This report explores the key investment trends in Iberia, analyses the underlying performance drivers across all major sub-markets and discusses the innovative trends shaping the local hospitality sector.

We provide insight into the evolution and legal considerations pertaining to the short-term accommodation apartments sector and the emergence of domestic real estate investment trusts (REITS).

To complete the picture, we asked selected domestic and international players active in the region, as well as those keen to expand into the Iberian Peninsula, for their views on this exciting market.