Invesco Real Estate, the global real estate investment arm of Invesco Ltd, has completed the acquisition of the five-star Radisson Collection Hotel, Gran Via Bilbao in northern Spain for a reported €42m, equating to approximately €306,600 per room. The deal was executed on behalf of SPREA, the real estate investment division of Santander Private Banking, and marks the second transaction between the two partners, following a previous residential land acquisition in Madrid for the development of 73 luxury homes.
The property, formerly Santander's headquarters, is situated in central Bilbao next to the city's main train station, Abando Indalecio Prieto, and includes a restaurant, rooftop bar, four meeting rooms and a swimming pool. The hotel has undergone a comprehensive renovation programme, resulting in LEED Platinum certification, and is leased to Radisson Hotel Group under a long-term agreement. The Radisson Collection brand sits at the very top of the group's portfolio, offering luxury accommodation and bespoke guest experiences.
"Like much of Spain, Bilbao is benefiting from strong demand driven by growth in visitor numbers, both tourists and business travellers. We expect this acquisition of the Radisson Collection hotel, in the upper segment of the market, to generate real value for Santander's clients," said Fernando San Juan Monje, Director of Investments in Spain at Invesco Real Estate. Jonathan Pierce, Senior Director, Fund Management Wealth at Invesco Real Estate, added: "Connecting the inherent benefits of real estate and other private market assets with the wealth channel is a key priority for Invesco Real Estate in 2026. An increasing number of banks and wealth managers are recognising the attractive opportunities offered by a market that, despite its rapid growth, remains relatively underexploited."
The deal is underpinned by robust tourism fundamentals: Spain welcomed 96.8m visitors in 2025, while Bilbao Airport handled 7.1m passengers, up from 6.8m the previous year, and overnight stays in the city rose 7.8% year on year. The transaction also marks the full exit of Hotei Properties Group from the Bilbao hotel market, having previously divested the Meliá Bilbao for €63m in March 2026, bringing its combined Bilbao disposals to €105m.
For investors and developers, the structure of this deal carries a signal that goes beyond the asset itself. The pairing of a global investment manager with a private bank's real estate division, to channel high-net-worth capital into income-producing, LEED Platinum-certified hospitality assets under long-term operator leases, is a model gaining traction across Europe. Invesco Real Estate manages approximately €87.2bn in real estate assets under management globally, with its European platform covering 247 assets across 13 countries and approximately €19.5bn in AUM. The Bilbao acquisition signals a sharpened focus on delivering inflation-linked, income-generating returns to private wealth clients, a segment that is rapidly becoming a key capital conduit for European hotel real estate.
The HVS Europe Hotel Transactions Bulletin for the week ending 15 May 2026 reported over €337m in European hotel transactions that week alone, underlining the pace at which institutional and private capital is returning to the hospitality sector. With LEED Platinum certification, a blue-chip operator covenant, and a prime city-centre location, the Radisson Collection Bilbao is precisely the type of asset that lenders and co-investors are prioritising, setting a clear benchmark for similar trophy hotel transactions across Spain and broader southern Europe.
People
- Fernando San Juan Monje, Director of Investments in Spain, Invesco Real Estate
- Jonathan Pierce, Senior Director, Fund Management Wealth, Invesco Real Estate
Companies
- Invesco Real Estate, global real estate investment manager, €87.2bn AUM globally, acquirer and asset manager
- Invesco Ltd, parent company of Invesco Real Estate
- SPREA, real estate investment division of Santander Private Banking, beneficiary of the acquisition
- Banco Santander, parent company of SPREA
- Radisson Collection Hotel, Gran Via Bilbao, five-star, 137-room asset, subject of the acquisition
- Radisson Hotel Group, long-term hotel operator under existing lease agreement
- Hotei Properties Group, former owner and vendor of the asset
Image Source: Radisson Collection Hotel, Gran Via Bilbao.
