Tenerife-based Spring Hotels has acquired three resorts on the island, in a major investment deal that will double the scale of the business.

Spring paid EUR430 million for the Mare Nostrum Resort, a major beachside asset with three distinct hotels, plus food and beverage outlets including a Hard Rock Cafe, and the Palapa Beach Club. Spring obtained bank loan funding for the acquisition from CaixaBank.

A trio of assets

The hotels are led by the Sir Anthony, a 70 room boutique hotel in the luxury segment. The largest is the Cleopatra Palace, with 431 rooms and featuring a Roman style to its four star accommodation. And the Arona Mediterranean Palace is another four star offering in a family-friendly format, with 391 rooms. The development also has a dedicated meetings and events facility.

Spring Hotels is a local business, based in Arona, and to date has operated three hotels on the island, all offering four star holiday accommodation. These are the 371 room Hotel Vulcano, the Bitcora with 314 rooms and a water park, and the adults-only Arona Gran.

“For us, this is more than a hotel expansion, it’s a proud repositioning of this iconic resort into local hands,” said Miguel Villarroya, CEO of Spring Hotels. “It’s a bold commitment to quality, a wider product range, and to Tenerife itself. This operation reflects the group’s strength and sustained growth over the past decade. It’s a strategic step that reinforces our position as a sector leader while expanding our offering by complementing our four-star portfolio with high-end tourism products.

Spring focuses its accommodation offering towards inbound UK and Irish holidaymakers, selling via partners including Jet2, TUI and easyJet. Joanne Robinson, chief sales officer for Spring Hotels, has also building a team focused on more sales via a broad travel agent base. She commented: “We’ll be educating everyone in the UK & Ireland about our new portfolio imminently. There’s real excitement about what this means for agents and customers alike.”

The Mare Nostrum Resort was sold by Canadian investment company Brookfield, which acquired the asset in 2021 from Catalan owner Jordi Mestre. The acquisition of the hotels by a local group will please those concerned that Spanish hotel assets have increasingly shifted into the ownership of international investment groups.

Developments stall across Tenerife

Spring’s acquisition comes at a time when there are few new hotel projects active in the Canary Islands. On Tenerife itself, the Top Hotel Projects database lists one upcoming hotel development, the Tenerife Blue Village Hotel. This 325 room proposal in Los Cristianos, planned by Macaronesian Hotels & Resorts, does not yet have a set completion date.

Other recent hotel transactions in Tenerife have included French group Covivio’s acquisition of the Iberostar Las Dalias hotel for EUR81 million, a deal announced at the end of 2024. And Spanish investment trust Atom Hoteles, which has been conducting a strategic disposal of hotel assets across Spain, sold the 409 room Labranda Suites Costa Adeje for EUR110 million. As with the Spring transaction, this was another deal that saw hotel assets return to local ownership. In this case the purchaser is a Canary Islands based family office.