These two transactions illustrate EXTENDAM’s approach to targeting high-potential destinations where urban transformation, accessibility, and balanced demand fundamentals create favourable conditions for hospitality investment.
In Madrid, the asset sold is located on Avenida Méndez Álvaro, just 700 metres from Atocha Station, one of Spain’s primary transportation hubs. Delivered in 2022, the hotel includes 230 modern rooms, 99 parking spaces, and a 500 sqm retail space now occupied by restaurant brands Goiko and Grosso Napoletano. The property has been operated by Continuum Hospitality Group since opening and continues under their management post-sale. Its central location, at the intersection of rail, metro, and bus networks, positions it to serve both business and leisure guests. Madrid’s strong hotel fundamentals, including one of the highest RevPAR levels in Southern Europe, supported a successful exit with a reported internal rate of return around 19%.
“We are delighted to have completed this latest transaction, alongside Continuum Hospitality Group and Meridia. The sale of this strategic asset in the heart of Madrid allows us to create significant value, with an IRR of around 19%, in line with the ambitions of the project from the outset. – Anna Cohen for EXTENDAM.
In Seville, EXTENDAM has committed to the development of a 184-room upscale hotel in Nervión, a key business and residential district. Scheduled to open in the first quarter of 2028, the hotel will feature a rooftop with panoramic pool, a restaurant, a bar, three modular meeting rooms (155 sqm), a fitness centre, and 40 parking spaces. Located near major transport nodes and the historic city centre, the property will be operated under an international brand and aims to obtain BREEAM “Very Good” certification. The Seville market, ranked second in Spain for RevPAR after Barcelona, combines consistent year-round demand with a hotel supply still fragmented, creating space for projects of greater scale and operational efficiency.
“This project is fully in line with our strategy in Spain, a market we know well and in which we have built up a solid network of local partners. Seville is a strategic city, combining tourist appeal, economic vitality and market depth.
We already operate a hotel in the north of the city, which demonstrates our in-depth knowledge of its ecosystem. We believe in the relevance of differentiating and sustainable projects in this area. We are also delighted to be working with Panoram Hotel Management for the first time, as their operational expertise and product vision are fully in line with our convictions” – Inès Haack, John Hewitt and Clémence Berger for EXTENDAM.
By linking a full-cycle divestment in Madrid with a long-term development in Seville, EXTENDAM continues to position itself in Spain’s most active hotel markets. These projects reflect broader sector trends, including the growing appetite for branded economy and upscale offerings, the importance of connectivity and mixed-use environments, and the sustained interest of institutional players in the Spanish hospitality landscape.
Spain combines strong tourism fundamentals, stable year-round demand in major cities, and development opportunities in underrepresented segments. The expansion into regional hubs like A Coruña, alongside continued investment in Madrid and Seville, highlights the breadth and depth of the Spanish market. In particular, the appeal lies in a balanced mix of domestic and international travellers, robust transport infrastructure, and an evolving supply landscape that still offers room for differentiation and value creation.
