Target Information

Spring Hotels has successfully acquired the Mare Nostrum Resort, situated in southern Tenerife, from Brookfield’s Selenta Group for a total of €430 million. This landmark transaction stands as the largest single hotel asset deal recorded in Spain to date. The acquisition allows Spring Hotels to significantly enhance its presence in the Canary Islands, adding over 1,000 rooms to its expanding portfolio.

The Mare Nostrum Resort is strategically located on the beachfront of Playa de Las Américas in Arona and consists of three distinct properties: the five-star Mediterranean Palace, which offers 536 rooms; the luxurious five-star Sir Anthony, with 70 rooms; and the four-star Cleopatra Palace, featuring 431 rooms. Furthermore, the resort boasts key entertainment and hospitality venues such as the Hard Rock Café Tenerife, La Palapa Beach Club adjacent to the seafront, and the Pirámide de Arona auditorium, which accommodates up to 3,000 guests and serves as a major conference center.

Industry Overview in Spain

The hotel industry in Spain, particularly within the Canary Islands, has experienced a notable surge in investment activity over the past years, driven largely by the increasing tourist inflow. In 2025’s first half, Spain's hotel investment volume surpassed that of the same period in the previous year by 10%. The Canary Islands have solidified their position as the premier destination for hotel investments in Spain, accounting for nearly 40% of the nation's total hotel investment volume so far this year.

The attractiveness of the Canary Islands as a tourist destination with its favorable climate and extensive leisure activities continues to draw both domestic and international travelers. This translates to a robust demand for hotel accommodations, prompting investors to seek high-value opportunities like the Mare Nostrum Resort. The region's appeal is further enhanced by its established hospitality infrastructure, which includes a diverse range of luxury and mid-market accommodation options.

Additionally, the hospitality sector's recovery post-COVID-19 has been marked by a resurgence in visitor numbers, resulting in heightened confidence among investors. The off-market nature of transactions, exemplified by the acquisition of Mare Nostrum Resort, signals a competitive climate among hotel operators aiming to expand their market share in lucrative locations.

Rationale Behind the Deal

This acquisition presents a strategic opportunity for Spring Hotels to position itself as a leading entity in the luxury tourism sector within the Canary Islands. By combining its existing four-star offerings with the newly acquired luxury assets, Spring aims to diversify its product range and appeal to a broader audience. The strategic refurbishment of the Mare Nostrum Resort, previously made at a cost of €56 million, further enhances its market viability and attractiveness.

Spring Hotels’ CEO, Miguel Villarroya, highlighted that this acquisition not only increases the company's managed capacity to over 2,300 beds across six hotels but also reinforces their established presence in Tenerife, where they already operate three properties. The deal underscores Spring Hotels’ capability to invest intelligently and manage local tourism effectively.

Investor Information

Spring Hotels is a prominent player in the Spanish hospitality sector, known for its commitment to providing quality accommodations complementing the unique offerings of the regions it serves. The company has built a reputable brand around excellent service, focusing on both leisure and business travelers. With this acquisition, Spring Hotels enhances its competitive standing in one of Spain's most sought-after vacation destinations.

The company, with a focus on sustainable growth, seeks to leverage the Mare Nostrum Resort’s significant potential by catering to the increasing demand for high-quality tourism experiences in the Canary Islands. The addition of such a prestigious asset is a decisive step towards achieving Spring Hotels' long-term growth objectives while solidifying its market leadership.

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From an investment perspective, the acquisition of the Mare Nostrum Resort appears to be a judicious decision for Spring Hotels. The enormous scale of the transaction, being the largest of its kind in Spain, suggests a strong commitment to expanding their footprint in a thriving market. Investing in a resort that has already received considerable refurbishment presents a reduced risk, as subsequent improvements will likely yield beneficial returns.

The resort’s strategic location in the Canary Islands, coupled with the uptick in tourism, bodes well for the expected profitability of the investment. With an influx of travelers seeking premium accommodations, Spring Hotels stands to gain substantially from bolstering its luxury offerings and tapping into the lucrative tourist sector.

Moreover, the deal not only fortifies Spring’s market position but also reflects overall confidence in the Spanish hotel industry. The strong performance indicators following the pandemic recovery indicate a favorable climate for investment. As the sector continues to thrive, this acquisition could be an essential factor in solidifying Spring Hotels’ success story.

In summary, this acquisition seems to be a well-calculated move for Spring Hotels, enhancing its asset base and competitive edge in a vibrant hospitality market. The forward-looking measures taken by the company align well with emerging trends in tourism, indicating that this deal could prove beneficial in the long run.

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