INVESTMENT ACTIVITY
The hotel funding market in Spain confirmed excellent momentum and consolidation throughout the most well-known half of 2025. With a total funding quantity of €2.1 billion, the sphere not solely recovered to pre-pandemic ranges nonetheless additionally recorded the third-highest first semester in history. Pushed by tough question and high-performing resources, the leisure sector regained its leadership, boosted by the file-breaking €430 million acquisition of the Mare Nostrum Resort in Tenerife. Home traders led the transactions, accounting for 66% of the amount. With a solid pipeline for H2 2025, the sphere is on goal. to surpass 3 billion effect, reinforcing Spain’s appeal to every domestic and international capital.
PRIME YIELDS
Hotel yields in Spain possess remained rep or a little bit of compressed in prime destinations equivalent to Madrid, Barcelona, the Balearic Islands, and the Canary Islands, driven by solid investor question and constrained offer.
SUPPLY & DEMAND
No matter file-breaking question, hotel offer has not saved tempo, growing a offer-question imbalance, with fewer hotel establishments (16,778) than 2015 ranges. This imbalance has contributed to rising costs and improved efficiency indicators (e.g., RevPAR). The puny disclose in offer is due to of constraints equivalent to land availability, regulatory pressures, and a focal level on quality over quantity. As a end result, the total different of hotel rooms elevated by solely 0.7% in H1 2025.
PERFORMANCE
Spain delivered a solid efficiency in H1 2025, with RevPAR growing by 6.9% 300 and sixty five days-over-300 and sixty five days to attain €115.7. This disclose became as soon as basically driven by a 6.5% upward push in ADR, whereas occupancy remained rep (+0.2 percentage aspects). ADR in Madrid and Barcelona rose by 6.6% and 3.1% when compared with H1 2024. Marbella and Fuerteventura had been main the disclose rate in ADR (+15% and 12%) whereas destinations taking part within the excellent will improve in occupancy had been Marbella (+4.3%), Zaragoza (+3.9%) and the Balearic Islands (+3.2%).
