As we enter 2026, Spain’s hotel market continues to display remarkable performances, consolidating its position as one of Europe’s most dynamic hospitality markets.

Despite a year marked by global economic uncertainty and shifting macroeconomic conditions, the fundamentals of the Spanish market remain strong, underpinned by robust domestic demand, easing interest rates, and the unquestionable strength of the tourism sector.

Tourism performance in 2025 was solid, with overnight stays reaching 348.1 million by November, confirming the market’s stabilisation after the exceptional highs of 2024. While growth has naturally moderated, RevPAR rose by 6.35%, driven by continued investment in product quality and a focus on value-added guest experiences. Resort destinations, particularly the Canary Islands, Balearic Islands, and Costa del Sol, led the way, benefiting from strong international demand and Spain’s reputation as a safe, accessible, and high-quality destination.

Urban markets displayed a more nuanced performance. Madrid, San Sebastián and La Coruña maintained their outperforming leadership, while Barcelona experienced a decline in occupancy, reflecting its maturity and limited growth potential. Secondary markets such as Valencia and Málaga entered a temporary adjustment phase - Valencia due to traveller stabilisation following the “Dana” floods in 2024, which affected the first half of 2025, and Málaga driven by a significant increase in hotel supply. Looking ahead, strategic pricing and inventory alignment will be critical in 2026, particularly as domestic travellers remain highly price-sensitive and rising operational costs continue to pressure margins.

On the supply side, 2025 saw over 143 new hotel openings, adding approximately 9,000 rooms, with a clear focus on upper-tier segments and urban destinations. The development pipeline remains robust, with four- and five-star hotels accounting for over 63% of future supply. Interestingly, independent hotels have regained prominence, particularly in urban areas, reflecting a growing demand for authenticity and local character.

From an investment perspective, Spain once again proved its strength and positioned itself as one of the most dynamic investment markets, with the €3.5 billion rank surpassed for the fourth consecutive year.

National buyers, making up 69.5% of the total, and Spanish operators have been the main actors within the market and in 2025, resort markets dominated activity, with Tenerife emerging as a key hotspot.

The €430 million sale of Mare Nostrum Resort and the €175 million acquisition of Fairmont La Hacienda were standout transactions, underscoring investor confidence in the long-term fundamentals of the leisure segment.

Urban markets also saw significant movement, including the €250 million+ Silken portfolio acquisition, the sale of the Hoxton in Barcelona or the operation involving the two gallery hotels in Malaga and Barcelona, all highlighting the continued appeal of both primary and secondary cities

Looking ahead, the outlook for 2026 is positive. With a more stable macroeconomic environment, continued tourism demand, and a maturing investment landscape, Spain’s hotel sector is well-positioned for further growth. The market continues to offer compelling opportunities for investors, developers, and operators alike.