The Spanish tourist sector has strongly recovered to pre-COVID levels according to the latest data published by the Spain’s National Statistics Institute.
Overnight stays in Spanish tourist accommodations for the first eight months of the year were up by more than 7% on 2022 reaching 334 million, the highest level in the past decade.
This represents an increase of nearly 3 million overnight stays compared to the same period in 2019.
The breakdown between domestic and foreign visitors shows that the latter have led this growth. Foreign visitors have increased their overnight stays by 11.5% compared to the same period last year, accounting for 61% of the total.
Figures for international tourists visiting Spain have strongly rebounded so far this year, close to the 58 million visitors reached in 2019.
Visitors came mainly from the United Kingdom, with more than 11.8 million tourists and an increase of 15.6% year-on-year, France with almost 8.4 million and an increase of 19.6% year-on-year and Germany with almost 7.2 million (8.9% increase year-on-year).
The annual growth was particularly noteworthy in tourists coming from United States (46.3%), Italy (23.5%) and Switzerland (21%).
Foreign visitors returned to their favorite mainland and island destinations. Catalonia was the main tourist destination with over 12.3 million international tourists, followed by the Balearic Islands with nearly 10.5 million and the Canary Islands with more than 8.9 million.
The good performance of the Spanish tourist sector is attracting investors in 2023.
Limestone Capital, a leading alternative asset manager with a focus on hospitality and travel, announced the acquisition of Hotel Axel on Calle de Atocha, Madrid in early October. Limestone acquired the operational hotel from Hotel Investment Partners, owned by Blackstone-managed funds. This is Limestone's second hotel acquisition in Spain, solidifying its presence in the market.
Indotek Group also announced in October it had strengthened its presence in Spain with the acquisition of the 368-room, 4-star H-Top Royal Beach Hotel in Lloret de Mar.
For the acquisition, Indotek has secured over €10 million in financing from Banco Santander, Spain’s predominant bank. This transaction not only marks the seventh hotel procurement in the country but also signifies Santander's role in financing five pivotal assets within the growing portfolio.
The asset will be refurbished, under a sale-and-leaseback deal, and with a substantial investment of €4 million slated for the next two years.
With over 1,600 rooms across seven coastal hotels, Indotek Group continue to invest in Spain, reflecting the sustained commitment and confidence in the tourism sector.
Iinvestor interest could be tempered by high interest rates. In addition, the pace of growth of the tourist sector is set to slowdown as the tightening of financing and inflationary pressures will likely weaken hotel overnight stays.
The hotel sector is expected to stay on the investor’s radar as Spain is the most popular hotel destination in the European Union, accounting for 19% of the EU total nights spent in hotels in 2022, according to Eurostat.
