Spain Set to Lead Europe's Economic Growth in 2026 Amidst Booming Hotel Investments

Spain is projected to top economic growth in Europe in 2026, with a forecasted rate of 2.1%, significantly surpassing the Eurozone average of 1.2%, according to Mastercard's Economic Outlook 2026 report. This optimistic outlook is fueled by increased immigration, which has expanded the country's workforce and addressed skill shortages, thereby driving higher consumption, particularly in the services sector. The report further highlights that Europe’s economy will benefit from lower inflation — expected to moderate at an average of 1.8% due to falling energy prices and a stronger euro — reduced interest rates, and resilient consumer demand backed by favorable fiscal policies.

Consumer behavior in Spain is shifting towards more cautious and affordable spending, with reduced outlays on fuel and large-ticket items. Mastercard’s Chief Economist, Natalia Lechmanova, emphasized that while Spain leads growth, countries like Germany will also see acceleration due to expansive fiscal measures. Supporting Spain's economic momentum, Mastercard's General Manager in Spain, Juan Pablo Vivas, reaffirmed the company's commitment to enhancing digital payment solutions, especially in the tourism sector.

Parallel to this economic growth forecast, Spain's hotel investment market has exhibited robust activity throughout 2025, underscoring strong investor confidence. Experts expect hotel investment to surpass 3 billion euros this year, driven by notable transactions involving key national hotel chains. Highlights include Spring Hotels’ historic acquisition of the Mare Nostrum Resort in Tenerife Sur for 430 million euros, marking the largest hotel transaction in Spanish history. Other significant deals include Catalonia Hotels & Resorts purchasing the Hesperia Barcelona del Mar for 27.7 million euros, Meliá Hotels International acquiring a 50% stake in Paradisus Salinas Lanzarote for 40 million euros, and Grupo Hotusa’s acquisition of nine Silken hotels for approximately 250 million euros.

The Canary Islands remain a hotspot for investment, while Barcelona and Madrid have also seen major transactions. These dynamic investments in the hospitality sector complement Spain's broader economic narrative, reflecting strong investor confidence and contributing to the country’s leading position in Europe’s growth outlook for 2026.