Buying a hotel in Spain

The Spanish real estate market for small hotels (up to 30 bedrooms) has demonstrated significant growth, driven by a robust tourism sector and strategic investments.

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Market Trends and Locations

In 2024, Spain welcomed approximately 54 million visitors in the first half of the year, with nearly 161 million overnight stays, reflecting a strong demand for diverse accommodations, including boutique and small hotels.

Major urban centers like Madrid and Barcelona continue to attract significant investments, while regions such as the Balearic and Canary Islands, along with cities like Málaga and Valencia, are emerging as attractive locations for small hotel developments.

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Average Daily Rate (ADR) and Occupancy

In 2024, the Spanish hotel sector experienced notable growth:

- ADR: Reached €158.40, a 33% increase from €118.40 in 2019.

- RevPAR: Increased by 33.6%, from €88.50 in 2019 to €118.30 in 2024.

- Occupancy Rate: Stood at 74.6%, just slightly below the 2019 peak of 74.7%.

Notably, Málaga achieved the highest occupancy at 83.9%, while Marbella recorded the highest ADR at €303.40.

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Transactions and Investments

The hotel investment landscape in Spain has been dynamic:

- Investment Volume: In 2023, hotel investments reached €4.2 billion, accounting for 36% of total real estate investments in the country. ‍

- Investor Profile: International investors, particularly from Saudi Arabia, the UAE, and Singapore, have been prominent, with investment funds representing over 70% of the total volume.‍

- Notable Transactions: Significant deals include the acquisition of the Mandarin Oriental Barcelona by The Olayan Group for over €200 million.

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Tourism and Flight Statistics

Spain's tourism sector has shown resilience and growth:

- Visitor Numbers: In the first half of 2024, Spain welcomed 54 million visitors. ‍

- Air Travel: Airports in leisure destinations have led passenger recovery, with notable increases in traffic, reflecting the country's appeal as a tourist destination.

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In summary, Spain's small hotel sector is thriving, supported by a strong tourism industry, increasing ADR, and substantial investments. While traditional urban centers remain focal points, emerging regions offer promising opportunities for boutique hotel developments.

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