Hotels, market data – Figures for the first quarter of 2026 in Iberia

The Iberian hotel market has started 2026 by consolidating the region as one of the main hotel investment destinations in Europe, marked by the combination of robust tourism demand and high investor interest. The data reflects positive prospects for the rest of the year. The strength of tourist demand, sustained price growth, and continued investor appetite reinforce Iberia's position as one of the main destinations for hotel investment in Europe, especially in the upscale and luxury segments, where much of the activity and future pipeline are concentrated.

Solid Operational Performance with Differentiated Growth Between Spain and Portugal

During the first three months of the year, Spain and Portugal maintained a strong hotel sector performance, albeit with different growth rates. In Spain, activity reached record figures with more than 20 million travelers, representing a 4% year-on-year growth, supported by both national and international demand. In Portugal, growth was more moderate but resilient, with 5.8 million guests in the first quarter, an increase of 1.5%.

In operational terms, both Spain and Portugal show positive development supported by tariff growth, though with nuances in their main indicators. In Spain, occupancy stands at around 62%, while the ADR (Average Daily Rate) reaches €116.7 (+3% year-on-year) and RevPAR (Revenue Per Available Room) reaches €71.5 (+3%), reflecting a balanced dynamic between demand and pricing. In Portugal, the ADR also registers a year-on-year growth of +3%, standing at €100.2, although occupancy experiences a slight adjustment down to 49.3% (-0.7 p.p.), which conditions a more moderate advance in RevPAR, increasing by +1.5% year-on-year to €49.4.

Iberia Strengthens its Position as a Key Destination for Hotel Investment in Europe

The investment market has been particularly dynamic in Iberia during the beginning of the year. The volume of hotel investment reached 1.1 billion euros, representing a 44% increase compared to the same period last year and a significantly higher volume than the average of recent years. Spain concentrated 66% of the investment, while Portugal accounted for 34%, positioning the region as the second European hotel market by volume, only behind the United Kingdom.

Transactional activity was marked by a higher number of operations and a clear preference for higher quality assets. In total, 46 hotels and more than 4,100 rooms were transacted during the quarter. The weight of luxury hotels is particularly notable, representing nearly half of the total investment, while, together with four-star hotels, they concentrated approximately 90% of the invested volume.

The investor profile was led by institutional capital, which represented nearly 60% of the total volume, followed by hotel chains and private investors. Regarding the origin of capital, national investors played a predominant role, representing approximately half of the total investment, with Spanish capital being particularly prominent. French investors also gained relevance, participating in a significant number of operations during the period.

The Balearic Islands, Lisbon, Madrid, and Porto are the Main Investment Destinations

From the point of view of asset typology, investment was concentrated mainly on individual operations on prime assets, while portfolio operations had a reduced weight compared to the historical average. By segments, the holiday typology slightly surpassed the urban, concentrating 51% of the invested volume. The Balearic Islands positioned themselves as the main investment destination, followed by Lisbon, Madrid, and Porto, all exceeding 100 million euros in investment.

Hotel prime yields remain stable in both Spain and Portugal, standing at 5% in Madrid and Barcelona and around 6% in the islands, while in Portugal they reach 5.5% in Lisbon and 5.75% in Porto. This stability is maintained despite the macroeconomic and geopolitical environment, supported by market liquidity and high investor interest.