Marketbeat Spain Hospitality

Key Takeaways

• Investment activity reaches its highest level since 2019: Hotel investment in Spain reached €4.2 billion in 2025, confirming the country as the second most active hotel investment market in Europe and highlighting the continued strong investor interest in the sector.
• A more selective and strategic market: After several years of exceptional activity, the market has entered a more balanced phase, characterized by greater investment discipline and a stronger focus on high-quality assets, particularly in prime urban locations and established resort destinations.
• Strong operating performance: The sector closed 2025 with an average ADR of €127.7 (+5.1%), occupancy of 70.3% (+1.2%), and RevPAR of €89.7 (+6.3%), with growth primarily driven by higher room rates rather than significant increases in demand volume.
• Stronger momentum in resort destinations: Resort locations recorded RevPAR growth of 6.6%, outperforming urban markets, which registered a 4.2% increase.
• Limited supply growth supporting performance: Tourism demand continues to expand from already record-high levels, while supply growth remains moderate (+0.7% year-on-year), supporting the strong operating performance of Spain’s hotel market.