Spain’s hotel market still offers many untapped opportunities, especially in Tier 2 cities with strong tourism but limited institutional investment. While major destinations such as Madrid and Barcelona face saturation and high acquisition prices, smaller cities continue to show solid occupancy rates and room for value creation.
To seize this opportunity, 4Founders Capital has launched 4Founders Capital Hospitality FCRE SA, its first fund focused on hotel investment. The new vehicle, registered with the CNMV under number 239, has a capacity of €60 million and a six-year horizon. It aims to invest in around 15 hotels, prioritising prime locations in secondary cities that promise both high potential and immediate dividend generation.
The goal is to combine income from hotel operations with long-term appreciation through hands-on asset management and modernisation. The fund expects to deliver a net IRR above 12%, a strong return compared to traditional real estate vehicles.
Driving digital hotel transformation
Based in Barcelona and founded in 2017 by Jesús Monleón, Marc Badosa, Javier Pérez-Tenessa, and Marek Fodor, later joined by Paula Blázquez, 4Founders Capital has built a track record as one of Spain’s leading early-stage investment firms. The firm currently manages more than €130 million across four funds, backed by a mix of institutional investors and family offices, including the EIF, CDTI, ICO, and ICF.
According to the founders, the new fund reflects their belief that “digital transformation and disciplined asset management will shape the next generation of hotel investment.”
This emphasis on technology and efficient management sets 4Founders apart from traditional hotel investors. Competitors such as Azora, Atom Hoteles, or Eurazeo’s Grape Hospitality focus mainly on large-scale or high-end assets.
In contrast, 4Founders’ new fund targets the mid-market segment in high-demand but less saturated cities, offering a balance between stability, growth, and returns.
What’s next?
Over the next few years, 4Founders plans to build a portfolio of strategically located hotels that deliver consistent operating yields and capital appreciation through active management and digital upgrades.
Looking ahead, the firm intends to use this fund as the foundation for a broader hospitality investment platform that will expand across Spain and Southern Europe.
