Covivio Hotels : Covivio continues its expansion in hospitality in Southern Europe with a new acquisition in Torremolinos, Spain

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Paris, 18th May 2026 Hospitality: Covivio continues its expansion in Southern Europe with a new acquisition in Torremolinos, Spain ‌Covivio announces the acquisition, through its subsidiary Covivio Hotels, of a hotel with a total of 440 rooms in Torremolinos, Spain. This transaction, backed by a 20-year lease agreement, is fully in line with the group's strategy to strengthen its position in the hotel sector, and more specifically in the buoyant Southern European market. Heading for the Costa del Sol with a first establishment in Torremolinos Covivio has finalised the acquisition of a 3-star hotel, operated by the Spanish hotel company FERGUS Group via its tent Hotels brand, in Torremolinos, southern Spain. Located at the heart of one of Spain's leading leisure destinations, the hotel benefits from the strong momentum of Torremolinos, which recorded 5.4 million overnight stays in 2025 (+17% vs. 2015). Supported by a year-round sunny climate (around 300 days of sunshine) and a rich cultural offering across Torremolinos and its wider catchment area, the destination enjoys limited seasonality. The hotel's location is particularly strategic: close to Torremolinos beach and town centre, it lies between Málaga and Marbella, just 6.4 km from Málaga Airport, Spain's fourth-busiest airport with 26,8 million passengers in 2025. The property, which underwent refurbishment in 2023, comprises 440 rooms across a total area of approximately 22,900 m², and offers numerous facilities including a lobby with a bar, a digital check in area, a book corner, working spaces, a restaurant, a coffee corner, a swimming pool with a sunbathing area and a bar, and a gym. The hotel also features two commercial premises representing additional revenue potential. The investment amounts to €43,5 million[1]. Covivio has signed a 20-year fixed-term lease agreement with FERGUS Group, yielding a guaranteed minimum rental yield of 7.1% and a target yield, including variable rent, of over 8%. From an environmental perspective, the hotel will be aligned with the CRREM 2030 (Carbon Risk Real Estate Monitor) trajectory. The installation of a Building Management System will enable the optimisation of energy consumption and the effective management of the property's environmental performance. Finally, under the contract with Covivio Hotels, the operator has ‌[1] 24 M€ group's share committed to obta...

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