The Canary Islands will have 6,395 new hotel rooms by 2028
44 new hotels are expected to open in the Canary Islands by 2028 adding a total of 6,395 new rooms for holidaymakers, according to the latest report by EY Parthenon. This development represents 6% of the total hotel investment in Spain, placing the Canaries ahead of regions such as Catalonia and the Balearic Islands in terms of planned growth.
As one of Spain’s most important tourist destinations, the Canary Islands continue to consolidate their status as a leader in the national hospitality market.
During the first half of 2025, the archipelago captured 37% of all hotel investment across the country, attracting €648 million in new capital, more than any other region.
A significant part of this investment was driven by the largest property transaction in Spain’s history: the €430 million purchase of the Mare Nostrum Resort in southern Tenerife by Spring Hotels, a landmark deal that further reinforces the island’s central role in the sector.
Southern Europe Dominates Hotel Investment
EY Parthenon's data highlights a marked shift in European hotel investment trends, with southern Europe now receiving 50% of all capital inflows in the first half of 2025. Spain, in particular, has seen a 7% year-on-year increase in hotel investment compared to the same period in 2024, confirming its appeal as a prime destination for international investors.
Tenerife and Gran Canaria Lead with Strong Performance
Tenerife boasts one of the highest hotel occupancy rates in Spain at 84%, supported by an 11% increase in both Average Daily Rate (ADR) and Revenue per Available Room (RevPAR). The ADR now stands at €144 per night.
Gran Canaria also shows robust performance, with hotel occupancy reaching 85%, a three-point rise compared to 2023. The island’s ADR is €142, reflecting a 10% increase, while RevPAR has climbed by 13%.
These figures place both islands ahead of other popular tourist regions such as the Costa del Sol and Costa Brava.
National Outlook
On a national scale, Spain is on track to open more than 700 new hotels and nearly 53,000 rooms by 2028. Andalucía leads the way, attracting 34% of the country’s hotel investment with 260 new hotels and over 18,000 rooms. The Valencian Community follows with 126 new hotels (9,059 rooms), and Madrid comes in third with 66 new establishments and 5,284 rooms.
With the Canaries securing their place as a top-tier destination for both tourists and investors, the region’s tourism and hospitality sector looks set for sustained growth in the coming years.
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