Spain: Hotel Investment Focuses on the Luxury Segment

The luxury hotel segment keeps growing in Spain. High-end hotels (5 stars and 5 stars GL) represented 37% of total hotel investment in the hotel sector last year, reaching 1.2 billion euros, according to data from the CBRE real estate consulting and services company.

The increasingly growing weight of this segment is a consequence of the polarization process that the hotel sector is undergoing in favor of the luxury and ultra-luxury segment.

Collectively, the Spanish hotel sector ranked as one of the most dynamic assets in the country during 2022, concentrating 18% of the total investment with 3.1 billion euros.

This figure represents the highest record in the last four years and 13% more than the average for the period 2015-2022. Only in the fourth quarter, the registered volume amounted to 761 million euros, according to the consultancy.

Forecasts point to more than 90 future openings scheduled between 2023 and 2028 of which a large number will take place throughout this year. Regarding the category, it is expected that approximately 25% will be GL and that around 70% will be located in coastal regions.

The hotel investment data is supported by the amounts recorded in 2022, which confirm the recovery of the sector after the pandemic. The number of travelers who stayed in hotel establishments stood at around 103 million in 2022, only 6% below the figure registered in 2019, according to data from the National Statistical Institute (INE).

In addition, the recovery of foreign tourism had a great impact, which represented 48% of the total (with the United Kingdom, Germany and France standing out as the main source countries).

A privileged position in historic buildings or unique enclaves, customized services, careful design and a very strong commitment to gastronomy, would be the main features that stand out in high-end hotels in Spain.