The year 2025 concluded with a hotel investment volume of 4.275 billion euros and 194 transactions in Spain, including existing hotels, properties for conversion to hotel use, and land for new developments, according to data from the 2025 Hotel Investment Report in Spain, prepared by Colliers.
For the third consecutive year, **Canary Islands** once again leads hotel investment with **17 transactions** worth **1.039 billion** euros, accounting for **24% of the total volume**. The Balearic archipelago, with a similar number of transactions, 18 in total, but a volume of 464 million euros, has been influenced by the absence of portfolio deals in the Mediterranean islands.
Investment has been concentrated in **existing hotels**, with 159 transactions totaling 21,767 rooms, for an aggregate volume of 3.986 billion euros (+30% compared to the 3.064 billion euros recorded in 2024). Conversions to hotel use maintained a relevant role, with a volume close to 160 million euros in 19 transactions, and an additional 16 land deals for hotel developments were closed for a total of 130 million euros.
**In the last five years, the hotel market in Spain has received more than 18 billion** euros, recurrently exceeding 3 billion annually. 2025 stands as the second-best historical record, surpassing the 4 billion euro mark, as already happened in 2018 and 2023.
Domestic investors lead 71% of operations
Domestic investors have been clearly responsible for energizing the market, accounting for 72% of the transactions for the year. For the second consecutive year, the domestic investor has been proclaimed the absolute leader, concentrating 63% of the total investment in 2025, equivalent to 2,673 million euros.
Among domestic investors, hotel chains stand out as clear protagonists, having signed 42 transactions worth 1,384 million euros and achieving their best historical record. The rest of the private investors have maintained their prominence with 67 transactions representing 48% of the total national volume.
Among international investors, who accounted for 37% of the total volume with €1,602 million, French funds stand out with leadership, investing 345 million euros in the acquisition of hotel assets in Spain.
After the temporary disruption recorded in 2024, the trend of investor preference for the vacation segment has been recovered, concentrating 55% of the total hotel investment, 2,336 million euros. However, the urban segment registered a higher number of transactions, with 112 assets compared to 82 in the vacation segment.