Covivio Expands Hotel Portfolio in Torremolinos, Spain

Covivio, through its subsidiary Covivio Hotels, has acquired a 440-room hotel in Torremolinos, Spain, in a move aligned with its strategy to expand in Southern Europe's hospitality sector. The acquisition includes a 20-year lease agreement with the FERGUS Group, targeting a rental yield of over 8% inclusive of variable rent.

The hotel, situated in a prime location between Málaga and Marbella, benefits from the area's sunny climate and cultural offerings, further boosted by proximity to Málaga Airport. With recent refurbishments, the property offers 22,900 m² of space and multiple facilities, such as a pool, restaurant, and gym.

Spain's tourism sector continues to thrive, positioning Torremolinos as a key destination with substantial growth potential. The move bolsters Covivio’s presence in the region, following successes in Porto and Milan, and marks the start of a partnership with FERGUS Group.