Covivio, a leading European real estate investment company, has announced the acquisition of the Iberostar Las Dalias hotel in the San Eugenio area of Costa Adeje for €81 million. This move marks a significant milestone in Covivio's expansion into the Spanish tourism market and is its first hotel property in the Canary Islands since its return to the hospitality sector in 2020.
The Iberostar Las Dalias, a well-known resort in the south of Tenerife, will continue operating under the Iberostar brand, ensuring the retention of jobs directly and indirectly associated with the hotel’s operations.
This acquisition highlights Covivio's commitment to strengthening its portfolio in key European holiday destinations, with Spain standing out as one of the most dynamic and profitable markets in the sector.
A Landmark Property in Covivio’s Expansion
Originally built in 1985 and extensively renovated in 2021, the Iberostar Las Dalias is a prime example of a high-value tourism asset. The resort’s location in Tenerife, one of Spain’s most sought-after destinations, aligns with Covivio's strategic focus on properties offering long-term stability and profitability in high-demand tourist areas.
The acquisition is particularly significant given the Canary Islands' reputation as a year-round tourism hotspot. With its mild climate and robust visitor numbers, the region has become a priority for companies seeking to capitalise on lucrative opportunities in the hospitality industry.
Covivio’s Strategic Focus on Tourism Assets
Covivio’s investment strategy centres on acquiring properties that combine high occupancy rates with strong profitability potential. The Canary Islands is an ideal location to meet these criteria, thanks to its consistent appeal to European tourists.
Industry sources suggest that this acquisition is expected to unlock significant profit potential, reinforcing Covivio’s position in the competitive tourism market. This move also signals renewed confidence in the recovery and growth of the hospitality sector, particularly in destinations with enduring demand.
