Spanish hotel firm Spring Hotels Group acquired the 1,037-room Mare Nostrum Resort Tenerife from Brookfield Asset Management for €430 million ($506.7 million). Business advisory Colliers helped broker the off-market deal and called it the largest single-hotel deal in Spanish history.
The price per key is approximately €414,700 ($488,512). The resort also has a beach club, the Hard Rock Cafe Tenerife, and the largest events venue in the southern part of Tenerife, the Pirámide de Arona, which seats 3,000 people.
Located in the island’s Playa de las Américas district, long loved by sun-seeking tourists, the Mare Nostrum contains three separate hotels — the 536-room Mediterranean Palace; the 431-room Cleopatra Palace; and the 70-room Sir Anthony Hotel.
Brookfield acquired the hotels in August 2021 as part of its purchase of Selenta Group for €440 million. Selenta's portfolio comprised 2,237 rooms and four hotel assets in locations such as Barcelona and Marbella. That deal was also brokered by Colliers.
Before the July 1 acquisition, Spring Hotels had three hotels in its portfolio, all on Tenerife in the Canary Islands — the 391-room Arona Gran Hotel; the 371-room Spring Hotel Vulcano; and the 314-room Spring Hotel Bitácora.
The Mare Nostrum Resort’s hotels have many restaurants, bars, pools and other vacation offerings.
Colliers added the deal means that Spain has already recorded through the first half of 2025 a transactions-volume figure 10% above the same period in 2024, and the Canary Islands has contributed 40% of Spain’s 2025 investment total.
Gonzalo Gutiérrez, managing director, hotels, Colliers Spain, told CoStar News Hotels the transaction sets a milestone for the Canary Islands, reinforcing its position as a solid hotel investment destination.
“This is important because in our opinion the Canary Islands has been somehow undervalued when compared with prime resort destinations in the Mediterranean. The islands are benefitting from an excellent and consistent market trend, an all-year-round season and outstanding hotel performance in terms of revenue and profitability,” he said.
He said the deal is a lifetime opportunity for Spring Hotels to consolidate its presence in the area by doubling the number of rooms under ownership and management, while Brookfield has realized “a highly profitable transaction that started with an acquisition in 2021 when the pandemic was still affecting tourism worldwide. The market recovery, a well-executed CapEx plan and the strong fundamentals of the Canary Islands have enabled them to achieve an outstanding result.”
“It is worth noting that, in this case, the purchaser has been a hotel chain assuming a significantly large investment volume, demonstrating the capacity of the local hotel chains to execute transactions of this profile,” Gutiérrez added.
He said one difference between the 2021 and 2025 transactions is that in 2021 Brookfield also acquired Selenta’s operating company.
“As there was a complex mix of assets and the operating company was included in the transaction, there is not a clear split of the price,” he said, reinforcing the accolades heaped on the 2025 acquisition price.
He added Brookfield had invested approximately €60 million ($71 million) in the renovation of the Mediterranean Palace and Sir Anthony hotels, while capital expenditure is pending on Cleopatra Palace.