Covivio Acquires a 440-Room Hotel in Torremolinos for 43.5 Million Euros
Covivio has completed the acquisition of a three-star hotel in Torremolinos, Andalusia, for a total of 43.5 million euros. This transaction is part of the French real estate group's strategy to expand in the hotel sector in Southern Europe.
Strategically Positioned Establishment on the Costa del Sol
The acquired hotel features 440 rooms spread over approximately 22,900 m² and includes comprehensive facilities: a restaurant, bar, swimming pool with solarium, gym, and two commercial spaces generating additional revenue. The property, renovated in 2023, is operated by the Spanish group Fergus. Located very close to the beach and the city center of Torremolinos, the facility is just 6.4 km from Málaga Airport, the fourth busiest Spanish airport with 26.8 million passengers in 2025. The destination enjoys a sunny climate (about 300 days of sunshine per year) and a rich cultural offering, reducing seasonality.
A 20-Year Lease with a Guaranteed Yield of 7.1%
Covivio has signed a long-term 20-year lease with Fergus Group, structured around a minimum guaranteed rental yield of 7.1% and a target yield exceeding 8% including the variable portion. The total acquisition cost amounts to 43.5 million euros, of which 24 million represents Covivio's share. Torremolinos recorded 5.4 million overnight stays in 2025, up 17% from 2015, with 80% of arrivals coming from international guests. Spain welcomed 96.8 million international visitors in 2025, confirming its status as a major European destination.
Alignment with 2030 Environmental Goals
The hotel will be brought into compliance with the CRREM 2030 (Carbon Risk Real Estate Monitor) trajectory. A building management system will be installed to optimize energy consumption and manage the environmental performance of the establishment. Fergus Group is contractually committed to obtaining a recognized certification, such as Green Key, and to progressively reducing the property's carbon footprint.
