Spain’s Growing Hotel Market Offers New Investment Opportunities for Tourists and Investors, Here’s All You Need to Know

Published on November 29, 2025

Spain’s hotel market is still being studied and potentially bought by investors. There are over 700 properties across the country advertised as for sale. Idealista recently published the results of their research on the hotel market that says over half of the properties are located on the 10 provinces with the most hotels, the majority of which are coastal provinces. Spain’s coastline and tourism still make Spain’s coastal properties in tourism real estate sought after.

A Snapshot of Spain’s Hotel Market: Coastal Dominance

The Spanish hotel market is heavily influenced by the demand for beachfront properties and coastal tourism, with Alicante taking the lead in the number of hotels for sale. According to the Idealista report, Alicante has 124 hotel properties currently on the market, representing approximately 9% of the total. The province’s Mediterranean coastline, with its popular resort towns and beaches, makes it a key hotspot for hotel investment.

Other coastal provinces that feature prominently in the top 10 include Málaga, with 111 listings (8%), and Granada, with 88 properties (6%). These provinces continue to benefit from Spain’s reputation as a year-round travel destination, attracting millions of international visitors each year. The strong tourism flow to these regions is reflected in the steady demand for hotels, both for sale and for short-term rentals.

The Balearic Islands, known for their world-class beaches, vibrant nightlife, and luxury resorts, also play a significant role in the market, with 83 hotel listings. Similarly, Valencia and Girona, with 65 and 63 properties respectively, reinforce the dominance of Spain’s Mediterranean regions in the hotel market.

Madrid and Asturias: Exceptions to the Coastal Trend

While coastal areas dominate the hotel market, there are a few exceptions. Madrid, Spain’s bustling capital, ranks lower in the top 10 with 52 hotels for sale. Despite the city’s appeal as a cultural and business hub, the focus of hotel investment remains on coastal and resort regions, which cater to both leisure travelers and long-term renters.

Asturias, the only northern province included in the report, also stands out with 54 properties listed. Known for its green landscapes and rugged coastline, Asturias has seen an uptick in interest as travelers seek destinations that offer both natural beauty and a more laid-back atmosphere. While not as heavily tourist-oriented as the Mediterranean coast, Asturias is becoming increasingly popular among those looking for a more peaceful getaway.

The Canary Islands: Emerging Opportunities in Hospitality Investment

In addition to the well-established coastal hotspots on the mainland, the Canary Islands are becoming an attractive option for investors looking to diversify their portfolios. While not part of the mainland, the Canary Islands are seeing a growing number of hotel listings, which speaks to the increasing demand for holiday accommodation in this popular archipelago.

The Canary Islands’ appeal as a year-round destination for European tourists, especially from the UK and Germany, makes it an ideal location for hotel investments. Gran Canaria and Tenerife, two of the archipelago’s largest islands, already have active hotel listings, ranging from boutique hotels to larger resorts. Some of these properties are being marketed as turnkey businesses, while others are available for renovation or repurposing.

For investors seeking opportunities in tourism-driven rentals or hospitality, the Canary Islands offer exciting prospects. These islands remain a popular vacation destination, and the demand for both budget and luxury accommodation continues to grow. Given the steady flow of tourists to the region, investing in hotels here presents an attractive opportunity for those looking to capitalize on Spain’s booming tourism market.

Major Cities and Tourist Hotspots: Where the Demand is High

Zooming in on the local level, certain cities and tourist hotspots dominate the hotel market. In the city of Alicante alone, 31 hotels are listed for sale, making it the top urban center in the region for hotel sales. The nearby coastal town of Calpe follows closely with 23 hotels available, reflecting the area’s popularity among both local and international tourists.

Madrid, despite being lower in the ranking, still sees significant activity, with 22 hotels up for sale. As Spain’s largest city and a major European business hub, Madrid continues to attract both leisure and corporate travelers, ensuring that there is strong demand for hotel accommodation.

Valencia, another major city on the Mediterranean coast, also ranks high with 20 hotels for sale. Known for its stunning architecture, beautiful beaches, and cultural attractions, Valencia has become a popular city break destination, making it a prime location for hotel investments.

Costa del Sol and the Mediterranean: Ongoing Strength of Spain’s Hospitality Sector

The Costa del Sol, famous for its beaches and upscale resorts, continues to show strength in the hotel market. Marbella, one of the region’s most luxurious destinations, is home to 21 hotels currently for sale, ahead of Málaga city (18) and Estepona (13). These areas remain a major draw for tourists seeking sun, sea, and relaxation. The Costa del Sol’s long-standing reputation as a top-tier European destination ensures that the demand for high-quality hotel accommodations will remain strong.

Other Mediterranean hotspots, including the Costa Brava, continue to attract a steady flow of visitors, further reinforcing the dominance of the coastal tourism sector in Spain’s hotel market. With a growing interest in Spain as a year-round destination, these areas are expected to see sustained growth in both hotel sales and tourism activity.

The Outlook for Spain’s Hotel Market

The outlook for Spain’s hotel market remains positive, with coastal destinations continuing to be the focal point for investors. As tourism recovers and demand for both short-term and long-term rental properties increases, the hotel sector is likely to remain a lucrative market for both domestic and international investors.

With Spain’s diverse regions offering everything from bustling city life and cultural attractions to tranquil coastal retreats, the country remains one of Europe’s most attractive destinations for both tourists and investors. Whether in the Mediterranean, the Canary Islands, or beyond, Spain’s hotel market offers a wealth of opportunities for those looking to tap into the growing tourism sector.

Spain’s Hotel Market Remains a Hotspot for Investment

Investor interest remains on the up and up in Spain’s industry, in particular the coastal and tourist hotspot areas. There are currently approximately 700 hotels on the market. Spain has all kinds of tourist attractions, including 5-star hotels, and cultural hubs, meaning there will always be hotels in demand. Spain is thus one of the more compelling hotspots in all of Europe for investors, and has little to no competition on the mainland and islands.