• Spanish Hospitality Market Overview 2023

    March, 2024

With an investment volume of €4,052 million (+24% vs. FY22 and the highest figure since 2018), the hospitality sector was the most active in Spain in FY23. A total of 169 assets have been transacted, representing 21,630 rooms and a record average sale price of €187,000 per room (+20% vs. FY22). Portfolio transactions accounted for 67% of the total investment volume, with a total investment value of €2,732 million.

Among typology, investment in vacational hotels continued to outperform the urban ones (67% vs. 33%). In terms of location, Balearic and Canary Islands were investor’s preferred choice, representing 52% of total investment, followed by Madrid and Barcelona, reaching out the 27% of the total investment.

The investor profile was led by institutional investors (especially sovereign funds), with more than 70% of total volume, followed by private investors (13%) and hotel chains (10%). International buyers dominated the market, reaching more than 75% of the total volume (especially remarkable Saudi Arabia, United Arab Emirates and Singapore).

Prime net yields increased by 50 b.ps. in FY23, reaching 5.25% in Madrid & Barcelona and 6.25% in the Balearic and Canary Islands. Average ADRs reached €110.1 (+c.9% vs FY22), while RevPar has increased to €74.4 (+c.16% vs FY22).

After two years of recovery, FY23 left extraordinary levels in terms of tourism activity, surpassing pre-pandemic figures. Spain surpassed 85 million international tourists, setting an all-time record.