Investment in the hotel sector decreases in the first half

Investment in the hotel sector decreases in the first half

Despite this decrease, Spain "continues to be one of the markets most demanded by investors", according to Jorge Ruiz director of CBRE Hoteles Spain, who explains that "the interest in the Spanish market has not diminished, but the fact is that the prices of assets and the shortage of opportunities is moving the focus of investors to secondary destinations that have also shown excellent behavior in recent months."

CBRE confirms that 78% of the investment has been focused in holiday assets and 22% in urban assets. By categories, the largest investment part corresponds to the 4 * (43% of the total), followed by those of 5 * (33%), 3 * (19%) and others (5 *). In turn, 75% of the capital invested was intended to individual assets and 25% to portfolios.

Institutional investors (43%) and hotel groups (40%) have been the most active players in these semester.

In terms of geographical distribution, the Balearic Islands and the Canary Islands have been the main investment destinations, with 27% and 26% of the total, respectively. Then, Málaga and Costa del Sol, with 9%, Madrid (5%) and Barcelona (4%).

For Miguel Casas, senior director of CBRE Hoteles España, "investors still see growth opportunities in their returns in the Spanish market, mainly in holiday areas and especially in the repositioning of assets and more variable agreements such as management agreements. The positive perspectives for the hotel market as well as the sale-purchase transactions currently underwway, including some relevant portfolios, make us think that 2018 will close with a total investment volume lower than last year but similar to 2016. "

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