Latin American Capital Invests in the Hotel Sector of Spain: A 2025 Strategic Opportunity

Introduction

Latin American capital has deepened its footprint within the Spanish property market in the last few years, reinforcing a trend that initially began with residential purchases at top-of-the-market prices and today is extending emphatically to broader, more niched segments, such as hotel. This represents not only rising confidence in Spain's economy but also the hunt for secure, long-term property assets by players across the Atlantic.

Key Players: More Than €1.7 Billion Invested

Latin American investment in the real estate market in Spain has grown since 2019 from 0.2% to 3.7% of the total, with over 30 operations in 2024 alone. Mexico and Brazil are at the forefront of the investment, with cumulative amounts of €1.003 billion and €340 million, respectively. Argentina, with smaller investment, has reached €287 million, while nations like Venezuela, Chile, and Peru have also invested with lower volume.

Hospitality Sector Tops Investor Demand

Among all property asset classes, the hotel segment has been the most appealing to Latin American capital, representing 40% of investment from 2019 to 2024, with a cumulative volume of €709 million. The reason lies in the compelling yields offered by Spain's tourism industry—one of the world's most popular tourist hotspots—and in the assets' appreciation potential thanks to prime locations.

Other principal sectors include:

• Offices: €550 million

• Retail: €321 million

• Living sector: €179 million

While these are significant, they remain behind hospitality in terms of total investment volume.

Madrid: Investment Hub

The Spanish capital accounted for over 75% of Latin American investment in 2024, and a five-year total of €1.125 billion. Madrid's appealing combination of political stability, global connectivity, economic vibrancy, and quality real estate supply positions it as the go-to destination for foreign investors.

Flagship transactions like Mexican conglomerate BeGrand's purchase of the Calle Alcalá-based Zurich Seguros building, and joint purchasing with Admara Capital of a property on Calle Antonio Maura, are strong examples of this increasing demand.

2025: Outlook and Prospects

Looking forward to 2025, this trend will persist, driven by a range of factors:

• Sustained Tourism Growth: The sector's full recovery after the pandemic, coupled with a rise in international tourism, enhances the appeal of hotel assets.

• Refurbishment Opportunities: Investors are looking to refurbish buildings in good locations, with potential for value enhancement, given the lack of new product.

• Positive Regulatory Environment: Better financing terms and legal certainty have backed foreign capital's confidence in Spain.

Conclusion: A Strategic Bet from LATAM

Latin American capital has found in the Spanish hotel market a safe and profitable means of diversifying investment portfolios. The combination of economic stability, tourist hegemony, and potential for asset appreciation makes Spain the ideal destination for 2025 and the coming years. For investors seeking real, sustainable, and high-impact assets, Spain's hospitality sector presents a unique landscape to take advantage of global trends and deliver long-term value.