Spain · market depth
€4.28bn of hotel investment
Colliers recorded 194 transactions in 2025. This supports the existence of an exit market, but activity is concentrated and spans very different hotel types.
Colliers · January 2026 ↗Investment research · 19 September 2026
A beautiful building.
A demanding investment.
A Spanish heritage hotel collection is possible. Returns above 20% net to investors require exceptional acquisition discipline, proven demand and enough operating scale. The evidence does not establish that they are easy or repeatable.
Almaro is a proposed collection. None of the nine prospects is owned or controlled, and no investment capital has been established. This is a research and underwriting exercise, not a record of completed investments or a subscription offer.
Read the research and model01 · The financial test
Select the economics
before the estate.
Both main scenarios below assume a hypothetical 30-room hotel, two development years, five operating cash flows and a sale in year seven. They are analytical scenarios, not budgets, forecasts or valuations for any of the nine listed properties.
Development base case5.7%
Net investor IRR. An attractive hotel can still fall far short of the return hurdle.
Qualifying deal scenario23.2%
Net investor IRR, contingent on a lower cost basis and substantially stronger trading.
First hotel, full central cost17.7%
The qualifying deal with €650k opening annual central cost, rather than €300k allocated across a collection.
| Assumption / result | Development base | Qualifying deal |
|---|---|---|
| Acquisition price | €2.50m | €1.75m |
| Total project cost | €10.74m | €9.25m |
| Opening net ADR / stabilized occupancy | €500 / 65% | €625 / 68% |
| Stabilized owner NOI, after reserve | €1.03m | €1.87m |
| Gross levered equity IRR | 7.6% | 27.4% |
| Net investor IRR / net multiple | 5.7% / 1.38× | 23.2% / 3.28× |
| Exit capitalization rate | 8.0% | 8.0% |
Net returns include company operating and asset-sale tax proxies, 1.5% annual sponsor fees, vehicle expenses and 20% carry above an 8% preference, with no catch-up. They exclude investor-specific taxes and withholding. Financing assumes 50% of eligible acquisition and development cost at 6.5% interest, not an available lender offer. See the workbook for fee bases, draw timing and the full waterfall.
The exit must be earned.
The qualifying scenario requires a €25.21m exit, about €840k per room. Approximately 83% of investor distributions arrive in the final year. No portfolio premium is assumed, but this valuation still needs independent transaction evidence.
02 · Where the return breaks
The margin for error
is narrower than it looks.
17.4%
Rates 10% lower
Qualifying scenario opening net ADR falls from €625 to €562.50.
13.9%
Occupancy 10 points lower
The occupancy reduction applies throughout ramp-up and stabilization.
18.3%
A missed year and extra works
One-year opening delay plus 20% additional development works cost.
The combined downside and the separate 15-room full-service stress both return 0.00× investor capital in this model: a full equity loss, with no calculable IRR and a shortfall to lenders. Investors are assumed to fund forecast operating deficits; real lender enforcement could occur earlier.
A low purchase price cannot repair every operating model. Even a free building produces only 12.6% net IRR in the development base case. Under the qualifying trading assumptions, the calculated acquisition ceiling for 20% net IRR is €2.85m and the corresponding total project budget is €10.54m. This is a screening ceiling, not an offer or appraisal.
03 · What the evidence establishes
A real market.
No automatic formula.
Demand · underwriting discipline
€339 five-star ADR in July
INE’s July 2026 national five-star ADR is a peak-month average. An opening annual €625 net ADR is an exceptional positioning assumption requiring a local, achieved-rate comp set.
INE · July 2026 bulletin ↗Rural · seasonality
28.4% annual room occupancy
Catalonia’s 2025 rural accommodation average shows why calendar-year demand must be tested. Generic rural lodging is not a luxury comp, and bed occupancy must not be confused with room occupancy.
Idescat · 2025 rural tourism ↗Precedents · realized versus projected
Returns exist; comparability is limited.
Azora reports a 19% shareholder IRR for Hispania, a much larger listed platform. Honotel reports over 35% for Timhotel and over 18.5% for CHR, without establishing the same net-LP basis as this model. These are evidence of hospitality value creation, not a Spanish rural return forecast.
Read the sourced case studies ↗The Pig · the scale question
33 rooms versus 56 rooms
A 2024 Groombridge planning appraisal projected −5.9% unlevered IRR at 33 rooms and 20.1% levered IRR at 56 rooms. It assumed no acquisition cost and omitted LP fees and carry. It is a forecast, not a realized investment return.
Read the appraisal analysis ↗Vestige / Reschio · product references
A design precedent is not a return precedent.
Both demonstrate a compelling heritage hospitality product. Public evidence reviewed does not disclose comparable investor IRRs. Long development timelines and wider ownership structures limit the financial comparison.
Read the evidence and limitations ↗04 · The route to a first investment
Prove a cluster.
Then build a collection.
Appoint the operator and define the service.
Price the actual staffing rota, food and beverage, night coverage and maintenance. A 14–20-room hotel needs a different service design from a large luxury resort.
Obtain evidence before exclusivity expires.
Request 36 months of monthly accounts, achieved net ADR, occupancy, channel mix, payroll and maintenance. Confirm title, lawful hotel use, permitted rooms, heritage constraints and utility capacity.
Price every part of the conversion.
Commission measured surveys and an independent cost plan covering structure, compliance, FF&E, professional fees, contingency, financing carry, pre-opening and working capital. Test a lost season.
Make the price fit the net return.
Obtain written debt terms and independent exit evidence. Approve only assets that pass a full investor waterfall after central costs and tax. Treat the nine Dealspace listings as prospects requiring verification.
Start with staged capital and a local operating base.
Prefer a small first cohort of legally operating hotels with controllable upgrades. The Granada prospects may form a cluster, subject to real travel times and standalone economics. Use specialist Spanish fund and tax counsel before accepting investor capital.
05 · The investment materials
Open the assumptions.
Prepared on 19 September 2026. The workbook is editable; the memo explains the source evidence, limitations, structure and diligence still required.
The decision in one page
One-page brief · PDFThe full investment case
Investment memo · PDFThe investor presentation
Presentation · PowerPointThe assumptions and cash flows
Financial model · ExcelEarlier property screening pages use different scopes and cash-yield conventions. They do not establish net investor IRRs and are not substitutes for this full development and investor cash-flow analysis. All modeled results are illustrative. There is no assurance of return or capital preservation.