Hotels, market data - Figures third quarter 2025 Iberia

Spain continues to be one of the most attractive tourist destinations in Europe. With 93 million visitors up to September, demand growth has moderated compared to previous years (+1% compared to the same period in 2024), reflecting a phase of stabilization in the sector marked by robust international demand.

Portugal reached 25 million guests and 56 million overnight stays through September, representing year-on-year increases of 3% and 2%, respectively. This trend, together with an increase in the number of establishments, highlights the dynamism of the tourism sector and its ability to respond to growing demand.

Iberia leads hotel investment in Europe

The Iberia region ranks as the leading European destination in terms of hotel investment volume (19% of the total), with nearly €3 billion transacted through September. This figure represents a 15% increase over the same period in 2024 and is 36% above the 2019-2023 average. Spain accounted for 89% of investment in Iberia and Portugal for 11%.

The trend during 2025 points to higher average ticket transactions and a polarization between luxury hotels (23%) and budget hotels (14%). Institutional investors led the activity with 39% of the total, followed by hotel chains with 36%. In terms of the origin of capital, 62% of the volume came from Spanish investors.

The vacation segment is gaining prominence over the urban segment. By location, the Canary Islands accounted for 25% of investment, followed by Barcelona (13%), Madrid (10%), the Balearic Islands (9%), and Lisbon and the Algarve (4% each).

Prime yields remained stable in both countries during the third quarter: Madrid and Barcelona at 5.0% and Lisbon at 5.5%.