Most of the existing spectral efficiency (SE) investigations for massive multi-input multi-output (MIMO) relaying assume that each antenna has a dedicated radio-frequency (RF) chain with high-quality user and relay hardware. We consider a hybrid massive MIMO multi-pair two-way half-duplex relay, wherein each RF chain steers multiple antennas and assume that both users and relay have hardware impairments. We derive i) a novel closed-form SE expression using large-scale approximation; and ii) asymptotic SE expressions for two different power scaling schemes. We numerically demonstrate that i) a hardware-impaired hybrid relay has measurably degraded SE than a hardware-impaired conventional full-RF chain relay; and ii) the impact of hardware impairments do not vanish asymptotically as $N\rightarrow \infty$, mainly due to users hardware impairments.