Covivio Hotels acquires hotel in Torremolinos for €43.5m

Covivio, through its subsidiary Covivio Hotels, has acquired a 440-room hotel in Torremolinos, Spain, for €43.5 mln.

Torremolinos, Covivio Hotels

This move aligns with Covivio's strategy to bolster its presence in the growing Southern European hospitality market.

The 3-star hotel will be operated by Fergus Group under its 'tent Hotels' brand. Torremolinos is a popular leisure destination, experiencing strong growth with 5.4 million overnight stays in 2025. Its sunny climate, cultural attractions, and strategic location between Málaga and Marbella, near Málaga Airport, contribute to its year-round appeal.

The property, refurbished in 2023, spans 22,900 m² and offers a range of amenities, including a bar, digital check-in, workspaces, a restaurant, a pool with a sunbathing area, and a gym. It also includes two commercial premises for extra income.

Covivio has secured a 20-year fixed-term lease with Fergus Group, guaranteeing a minimum rental yield of 7.1% and a target yield, including variable rent, exceeding 8%.

Environmentally, the hotel will adhere to the CRREM 2030 trajectory. A Building Management System will optimise energy use and environmental performance. The operator is also committed to obtaining a recognised green certification, such as Green Key, and continually reducing the property's carbon footprint.

Tugdual Millet, CEO Hotels, Covivio, commented: “This acquisition, which follows our recent transactions in Porto and Milan, illustrates Covivio’s strengthening position in the hotel sector, and more specifically in Southern Europe. We are targeting high-potential assets located in dynamic leisure destinations where we aim to create long-term value. This deal also launches a new partnership with one of Spain’s top hotel operators, opening new growth opportunities in the local market.”