The Catalan hotel sector has achieved an investment volume of 426 million euros from January to September this year, according to data provided by CBRE. During this period, Barcelona has emerged as the main destination for hotel investment in Spain, capturing 25% of the national total, followed by the Balearic Islands with 24%, Madrid with 14%, the Canary Islands with 13% and Malaga with 10%.
Nationally, investment in the hotel sector reached 1.7 billion euros up to September, marking a 21% decrease compared to the same period last year. In Catalonia, investment in this sector decreased by 13% compared to last year, a period marked by significant sales such as those of the Hotel Mandarin, the Hotel Dolce Sitges and the Hotel Sofia Barcelona. Nevertheless, the hotel sector remains the leading asset class in Catalonia, outperforming the housing (€377 million) and office sectors (€357 million).
Despite the year-on-year decline, investors maintain a sustained interest in the sector, albeit with smaller transactions. In the first nine months of the year, the Catalan market has seen a total of fifteen transactions, more than double the seven registered in the same period last year. In addition, between January and September this year, 1,690 rooms were transferred, up from 1,115 in the corresponding period last year.
‘This trend is also observed at the national level, where unlike last year we are not seeing as many portfolio rotations, but more medium-sized transactions. However, investor interest in this sector remains intact, supported by the good fundamentals of this market,’ explained Jorge Ruiz, Director of Hotels in Iberia at CBRE.
Several significant transactions have taken place in recent months, such as the acquisition by Atom of the Miramar luxury hotel, which has 75 rooms, and the Gran Hotel La Florida, with 70 rooms. Also noteworthy is the sale of the 98-room Ocean Drive Barcelona. These operations underline the growing interest in the luxury hotel sector, which represents 24% of hotel investment in Barcelona, a figure that is in line with the national average.
Domestic capital plays a leading role in investment
The investor profile in the hotel sector has diversified, with a significant participation of large hotel chains, which represent 35%, and private investors, which account for 34%, reflecting a similar trend to that observed at the national level. In Spain, private investors lead with 35% and hotel chains follow closely with 33%.
In addition, there has been a notable increase in the participation of domestic investors, who now account for more than 50% of transactions nationally, a significant increase from 28% in 2023. In Catalonia, the proportion of domestic investment has increased from 15% to 41% of the total transacted from the first to the third quarter of this year. A notable example is the purchase of Casa Lit Barcelona by the Gargallo Group from Stoneweg and Bain Capital, with CBRE acting as advisor.
In terms of yields, prime hotel properties remained stable at 5.25% in Madrid and Barcelona at the end of the third quarter, and 6.25% in the Islands. However, a downward trend is anticipated in the coming months due to the current interest rate environment, high investor interest and solid operating performance.
The hotel supply in Barcelona is made up of 146,283 beds available in 1,121 establishments, with an occupancy rate that reached 77% at the end of the third quarter, exceeding the national average of 70%.
These data underline the solid operating performance of the hotel industry from January to September 2024, showing an improvement over the previous year thanks to the solid performance of demand and the increase in the average rate.
The average price per occupied room (ADR) reached €148.72, 8% higher than in the first nine months of 2023, while the average revenue per available room (RevPAR) stood at €118.09, representing a 10% increase over the previous year. Both indicators exceed the national averages, which stood at an ADR of 119.69 euros (a year-on-year increase of 8%) and a RevPAR of 84.28 euros (up 11%).
