Hospitality: Covivio continues its expansion in Southern Europe with a new acquisition in Torremolinos, Spain

Heading for the Costa del Sol with a first establishment in Torremolinos

Covivio has finalised the acquisition of a 3-star hotel, operated by the Spanish hotel company FERGUS Group via its tent Hotels brand, in Torremolinos, southern Spain.

Located at the heart of one of Spain’s leading leisure destinations, the hotel benefits from the strong momentum of Torremolinos, which recorded 5.4 million overnight stays in 2025 (+17% vs. 2015). Supported by a year-round sunny climate (around 300 days of sunshine) and a rich cultural offering across Torremolinos and its wider catchment area, the destination enjoys limited seasonality.

The hotel’s location is particularly strategic: close to Torremolinos beach and town centre, it lies between Málaga and Marbella, just 6.4 km from Málaga Airport, Spain’s fourth-busiest airport with 26,8 million passengers in 2025.

The property, which underwent refurbishment in 2023, comprises 440 rooms across a total area of approximately 22,900 m², and offers numerous facilities including a lobby with a bar, a digital check in area, a book corner, working spaces, a restaurant, a coffee corner, a swimming pool with a sunbathing area and a bar, and a gym. The hotel also features two commercial premises representing additional revenue potential.

The investment amounts to €43,5 million[1]. Covivio has signed a 20-year fixed-term lease agreement with FERGUS Group, yielding a guaranteed minimum rental yield of 7.1% and a target yield, including variable rent, of over 8%.

From an environmental perspective, the hotel will be aligned with the CRREM 2030 (Carbon Risk Real Estate Monitor) trajectory. The installation of a Building Management System will enable the optimisation of energy consumption and the effective management of the property’s environmental performance. Finally, under the contract with Covivio Hotels, the operator has committed to obtaining a recognised certification, such as Green Key,
and keep improving its environmental performance, including by reducing the property’s carbon footprint.

[1] 24 M€ group’s share

Spain, a destination with one of the highest growth rates in Southern Europe

Spain is establishing itself as one of Europe’s most attractive destinations, with nearly 96,8 million international visitors in 2025. Over the past ten years, the country has experienced sustained growth in international tourism, confirming its position among Europe’s leaders. The Spanish hotel sector records a high average occupancy rate (around 74% in 2024), confirming the market’s vitality.

Within this favourable context, Torremolinos emerges as a flagship Costa del Sol destination, driven by strong international demand (+80% of overnight stays in 2025). The market therefore presents compelling strategic potential, combining robust operating fundamentals with long-term growth visibility.