Investment in the hotel sector in Spain grew by 83% in 2017 compared to the previous year, reaching a transaction volume of 3,750 million euros, according to the consultancy CBRE Hotels. A cumulative figure that represents a historic record in the Spanish market, surpassing that achieved in 2015. This increase is mainly due to the strong demand from investors to buy and capitalize hotel assets, taking advantage of the clear economic and real estate recovery in Spain.
Throughout the year, operations were carried out in Spain on 190 hotel assets, 23% more than in 2016, with a total of more than 28,000 rooms, to which should be added 2,200 corresponding to buildings and projects already sold under construction. In addition, the most sought-after hotel assets are those of 4 stars, accounting for 42% of investments.
As for the main investment destinations in the hotel sector, the Canary Islands (21%) and Balearic Islands (18%) together with Madrid (17%) occupy the top positions, followed by Barcelona and Malaga. The most significant changes, compared to 2016, have been seen in Barcelona and the two archipelagos, going from 36% to 15% in the first case and from 24% to 39% in the second. Depending on the type of transaction, in the sale of hotel portfolios, vacation resorts account for 60% of the total, compared to 40% of urban resorts. On the other hand, in 60% of cases, buyers have invested in individual assets rather than portfolios (40%). According to the class of buyers or investments that this year have acquired more hotel assets, including not only hotels but also tourist apartments, aparthotels and plots of land and buildings for hotel use.
Among the main operations carried out during the year were the sale in December of HI Partners, Banco Sabadell’s hotel management platform, to Blackstone funds for 630.7 million euros (Blackstone buys HI Partners for 630 million euros).
“The excellent performance of the main tourist markets and excess liquidity in the capital market has led to a historic year with more than 150 transactions in which institutional capital has returned to be the protagonist,”explained the national director of CBRE Hotels, Jorge Ruiz. In addition, he adds that “the outlook is positive and we expect 2018 with greater market concentration and renewed interest in the tourism industry in our country.