Spanish hotels are becoming an increasing focus for international property investors, according to new research.
Property consultancy Savills ranked Spain as the top destination for those seeking real estate assets, as the result of questions asked during the firm’s Investor Sentiment Survey 2025. Of the different real estate classes, hotels are now the most preferred, with interest up 21% year on year.
Tourism boosts hotel demand
Spain and Portugal continue to draw strong tourism numbers, and their economies are set for an above average performance into 2026. Spain is the continent’s second most visited country, while much smaller Portugal still ranks well in 15th place. As a result, hotel room rates are on the rise, responding to growing demand.
Five cities in the region also score highly when it comes to remote working. Demand from digital nomads supports long stay accommodation, including home rentals on platforms such as Vrbo, Booking and Airbnb.
“The Iberian hotel market is experiencing fantastic growth, driven by a unique convergence of macroeconomic strength, tourism resilience, and evolving investor appetite,” said Javier Oroz, director of hotel capital markets at Savills in Spain. “We’re seeing heightened interest not only in traditional hotel assets but also in extended-stay and serviced apartment formats, reflecting the region’s adaptability to new travel and lifestyle trends.”
Strong demand for accommodation has been driven in large part by growing numbers of tourist visitors to Spain. This has led to tensions in some parts of the country, with protests against the volume of visitors, and accusations that listing properties on platforms such as Airbnb is removing rental housing from the market.
In Barcelona, tourism pressures have led to the mayor restricting hotel development, and inflicting stronger limits on short term holiday rentals. For investors in hotels, the limit on new construction could be seen as a positive, underlining the value of existing hotel properties in the market.
This pressure in key hotspots is now driving investors to look for alternative locations. New hotels will surely be developed in other attractive Spanish destinations, spreading tourism more broadly in the country. One recent example of this is the opening of a new Hilton hotel in Caceres, a city in the Extremadura region. The 73 room Curio Collection property has been created by restoring the historic Palacio de Godoy.
Booming Madrid
Madrid remains an investment hotspot for hotels. Ennismore recently announced the signing of Hoxton Madrid, a 192 room hotel that will open in a modernist landmark in the city during 2026. IHG has just opened Voco Madrid – Las Tablas, its second property for the brand in the city. And in September 2025, Hilton signed the DoubleTree by Hilton Madrid Principe de Vergara. The 155 room hotel will operate under a franchise agreement with Key International, opening in late 2026.
Institutional investors and owner-operators are the most active buyers, in a market that is valued for its liquidity. During the last year, single asset deals dominated, allowing buyers and sellers easy access into, and out of the market.
