Investment in the Canary Islands' hotel sector has slowed during the first half of 2026 following last year's record-breaking performance, although the islands remain one of the top destinations for tourism investment in Spain.
According to the latest report by property consultancy Colliers, hotel investment in the Canary Islands totalled €363 million between January and June, placing the archipelago among the country's leading hotel markets.
However, the figure is well below the exceptional levels seen in 2025, when the Canary Islands attracted €1.04 billion in hotel investment—around 24% of all hotel investment in Spain.
Return to More Normal Market Conditions
Colliers describes the current slowdown as a "normalisation" rather than a decline in investor interest.
Last year's record was driven by several major transactions, including the €430 million acquisition of the Mare Nostrum Resort in Tenerife by the Spring Hotels Group, which became the largest hotel deal ever completed in Spain.
This year, while investment remains strong, the market has returned to a more sustainable pace after the extraordinary activity seen in 2025.
Canary Islands Still Among Spain's Top Destinations
The Canary Islands ranked fourth in Spain for hotel investment during the first six months of the year. The regional rankings were:
Although overtaken by several other destinations, the Canary Islands still outperformed Barcelona and continue to attract significant investor interest.
Key Deals in 2026
Among the largest hotel transactions completed in the Canary Islands this year were:
These deals reflect continued confidence in the islands' tourism sector despite the lower overall investment volume.
Spain Records Strongest Start on Record
Nationally, Spain's hotel investment market continues to perform strongly. Colliers reports that €2.46 billion was invested in Spanish hotels during the first half of 2026, representing a 26.5% increase compared with the same period last year and the strongest first half ever recorded.
Holiday resorts remained the biggest draw for investors, accounting for 60% of total investment, while city hotels attracted the remaining 40%.
The consultancy says coastal destinations and island markets—including the Canary Islands, continue to appeal to investors thanks to strong tourism demand, limited hotel supply and opportunities to refurbish and reposition existing properties.
Luxury Hotels Lead Investment
Investment has also become increasingly focused on higher-end accommodation.
Across Spain, five-star hotels accounted for 51% of all hotel investment during the first half of the year, while four-star properties represented a further 35%.
Together, these two categories made up 86% of the national investment total.
The growing demand for premium hotels has also pushed the average price paid per room to a new record of €213,300, up from €183,100 in 2025.
While the Canary Islands may not be repeating last year's record-breaking performance, the latest figures suggest the archipelago remains one of Spain's most attractive destinations for long-term hotel investment.
