Why Hotel Investment in Spain Remains a Smart Move

With Spain continuing to rank among the world’s top tourist destinations, investors are returning to the hotel sector. Amid growing concerns over overtourism and regulatory crackdowns on short-term rentals, hotel investment in Spain presents a stable and scalable opportunity.

Leer más: Why Hotel Investment in Spain Remains a Smart Move

A recent partnership between Westmont Hospitality and Grupo Lar highlights the strong potential for the Spanish hotel market, with an initial €350 million investment aimed at developing and operating hotels across key cities over six years.

A Strategic Partnership

The collaboration between Westmont Hospitality and Grupo Lar brings together two industry leaders with complementary expertise. Westmont, a global hotel owner-operator with partnerships with leading chains like Hilton, Marriott, and IHG, brings operational excellence and market knowledge to the table. Grupo Lar, a specialist in real estate development, returns to the hospitality sector after its success with the NH Abascal in Madrid.

The first phase of this ambitious partnership will focus on the select-service hotel segment, with plans for 12 properties comprising around 2,500 rooms. This strategy targets key Spanish cities where demand for high-quality, mid-range accommodations continues to rise.

“Partnering with Grupo Lar represents a unique opportunity to boost the select-service hotel market in Spain,” a Westmont spokesperson told Hospitality Investor. “Together, we aim to create significant value by responding to the growing demand for high-quality select-service properties across the country.”

Capitalising on Market Trends

Spain’s hotel sector has shown resilience and adaptability in the face of changing market conditions. Miguel Ángel Peña, CEO of Living de Grupo Lar, expressed enthusiasm for the partnership, telling Hospitality Investor, “We are very pleased to partner with Westmont Hospitality on this ambitious project. Their experience in operational hotel management and our real estate development capacity creates an absolute synergy for this type of investment in a sector with great potential in Spain.”

This resurgence of interest in hotels is further bolstered by challenges in the short-term rental market. Cities like Barcelona, Madrid, and Palma de Mallorca are tightening regulations on rental properties to combat overtourism and protect local housing markets. As a result, hotels are reclaiming their role as the go-to accommodation option for international travellers.

The Long-Term Outlook

With a commitment to sustainability and quality, Westmont and Grupo Lar aim to meet the evolving needs of both leisure and business travellers. Their focus on select-service hotels addresses a gap in the market, ensuring a solid return on investment while delivering value to guests.

For commercial property investors, Spain’s hotel industry offers a proven track record, strong tourism numbers, and opportunities for growth through strategic partnerships like this one. As regulatory pressures reshape the tourism landscape, the hotel sector remains a robust and reliable investment avenue.

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