The hotel construction industry in Spain is expected to have a record-breaking year in 2024. DoubleTrade data shows a 64.8% growth in new hotel works and refurbishments between January and March, totaling 412 works worth 1,958 million euros.
The region of Malaga has the most significant investments in Spain, with the construction of the Villa Padierna Beach Resort in Marbella, which will cost 650 million euros.
This significant increase in hotel construction and refurbishments continues the upward trend seen in 2023, when hotel construction grew by 11.9%. The data predicts an exponential increase in hotel supply to meet the growing tourist demand in Spain.
During the first quarter of 2024, the investment for hotel refurbishment and construction reached a record high of over €1,958 million, a 622% increase compared to the start of 2023. This investment was spread over 412 hotel projects.
If this trend continues throughout the year, the Spanish hotel industry will have a historic year in terms of both the volume of work and the budget allocated to it.
According to the data, this would be a new milestone after last year's 11.9% increase in the execution of new hotel works and refurbishments to 888 works, for which 1,112 million euros were allocated, 3.9% more than the previous year.
The significant activity in Spanish hotel construction and refurbishment at the beginning of this year is remarkable and could signify a record year.
Three large hotel projects started in March, and they have significantly contributed to the hotel industry's statistics. The Four Seasons hotel complex in Marbella is leading the way, followed by a high-end tourist and hotel complex called Villa Padierna Beach Resort, valued at 650 million euros, which is being built by the Villa Padierna Group.
The coast of Malaga is the primary beneficiary of this wave of investment, with the second most expensive project being the refurbishment of a hotel in Casares for 409 million euros. The third project is to construct another hotel in Marbella for 200 million euros. Another notable project is the Hotel Torre del Puerto de Málaga, which has a budget of 105 million euros.
Other significant projects started in 2023, such as the remodeling of the Hotel Rey Juan Carlos I in Barcelona, with a budget of 40 million euros, and the construction of the Hotel Lunic in Sagunto, Valencia, for which 22 million euros have been reserved, according to reports.