Spanish hotel industry sees 83% increase in investment in 2017

The amount of money being poured into Spain’s hotel industry soared by around 83% last year, rising to €3.75 billion, according to the Spanish Hotel Association.

This increase in investment reflects the surging popularity of Spain as a year-round holiday destination…

The regions that attracted the most new investment were the Canary Islands, which saw a 21% increase in investment, followed by the Balearics with an 18% rise, Madrid with a 17% rise and Málaga Province – which includes the Costa del Sol – with a 15% increase.

Málaga is now Spain’s fifth-most popular destination for hotel investors, the data showed, cementing its status as the capital of a region blessed with excellent transport links, climate and popularity.

The city itself has enjoyed a surge in tourism over the past few years, and the hotel chains have begun to notice as cash and visitors pour in to enjoy Málaga’s history, cuisine, architecture and nightlife.

In Mijas Council, which oversees a large stretch of the Costa del Sol, some 1,900 new construction licences were granted in 2017 – 300 more than in 2016.

Of course, that does not mean that the area will see 1,900 new hotels, but it is a sign of the times that money is returning to a region and industry that had taken a spending breather between 2007 – 2013.

The Hotel Association estimates that, of those 1,900 licences, 1,600 are for minor improvements to existing hotels, while 300 licences are for “major” projects, which will include a smattering of completely new establishments.