The Spanish hotel market has made a strong start to 2025. According to the latest Savills trends report -presented during the ninth edition of the meeting Hot Trends-The sector is experiencing a moment of operational soundness, strong profitability and, most strikingly, a clear change in the investment map: secondary destinations have surpassed Madrid and Barcelona for the first time in terms of transaction volume.
Cities such as Malaga, Seville, Valencia, Palma and Bilbao now account for 28% of the capital invested in the first half of the year, compared to a combined 18% for the two large cities. The explanation is twofold: on the one hand, the consolidation of these destinations as mature and stable options; on the other, the shortage of product available in the prime marketsespecially in Madrid.
More operations, although smaller in size
The semester ended with around 70 hotels transacted and a total volume exceeding 1.25 billion euros. Most of the transactions have been below 20 million euros, and only six have exceeded 50 million euros. Even so, Savills expects a more dynamic second half of the year, with several large transactions already underway.
An important fact: European institutional capital is once again gaining prominenceafter a further 2024 led by private investors and operators. This turnaround points to greater confidence in the evolution of the market in the medium term.
Record profitability in a context of limited new supply
Operating data are also solid. At the end of April, RevPAR grew by 6.5% compared to the same period of the previous year.The growth of the average daily rate (ADR), driven by the average daily rate (ADR), in both urban and coastal destinations, is forecast for the full year at 5%, well above inflation, putting it at sustainable levels. The forecast for the full year points to growth of 5%, well above inflation, which places it at sustainable levels.
In parallel, the hotel stock has barely grown by 1% per year since 2019. By 2025, it is expected to open about 8,000 new roomsThe number of new units will be added to the nearly 17,000 currently being refurbished. The luxury segment is particularly important, which represents 40% of recent openings.
An optimistic vision (albeit with challenges)
The survey accompanying the report, conducted among more than 190 industry professionals, shows a clear optimism: only 5% foresee a possible drop in demand in 2025, and more than 75% believe profit margins will remain the same or increase slightly.
Of course, there are challenges. Shortage of qualified personnel and increasing regulatory requirements are among the main concerns of the sector.
Even so, everything points to the fact that we are in front of a new cycle that is more mature, more diversified and more sustainableAs Juan Garnica, CEO of Savills Hotels, summarizes: "We closed a good first half of the year and anticipate a positive 2025, with solid margins and moderate but sustained growth over time.