Spain Consolidates Its Position as a Priority Destination for Hotel Investment in Europe
The Iberian Peninsula — with Spain taking a leading role — reaffirms its position as the most attractive region for hotel investment in Europe, according to the fourth edition of the Hotel Investor Compass 2025 report, prepared by Cushman & Wakefield. The study, based on responses from 62 major institutional investors who have allocated over €16 billion to the sector since 2019, offers a detailed snapshot of the trends set to shape the market this year.
Madrid and Barcelona lead the European ranking of the most desirable cities for hotel investment, outperforming even traditional destinations like London or Paris. This preference is driven by the dynamism of the Spanish market, its growth potential, and the strength of its tourism demand, particularly in major cities and coastal areas.
Globally, the report reveals a notable increase in investor confidence, with 56% of respondents planning to increase capital allocation to hotel operations this year. At the same time, expectations for hotel asset price appreciation are focused on Italy and the Iberian Peninsula, where the highest increase is anticipated — with an average of 3.3%.
Sustainability is becoming a key factor, with investors willing to pay a premium of up to 5% for hotel assets holding top-tier ESG certifications, such as BREEAM Outstanding or LEED Platinum.
Despite the macroeconomic context and ongoing geopolitical uncertainty, the study identifies improvements in financing access and reduced concern over returns, positioning hotel assets — particularly urban and high-end properties — as a strategic investment for 2025.
