The year 2017 begins with great hopes placed on tourism. A business opportunity that has been able to take advantage of hotel investment with 710 million in purchases.
Tourism and the real estate sector are joining forces again. 75 million visitors in Spain in 2016 have attracted more interest, if any, in hotel investment.
The first months of 2017 have left an increase of almost 35% in the purchase of hotel assets, according to CBRE Hotels.
The months of January to March have not only had investments in tourist apartments or hotel establishments. There has also been an increase in the sale of lots and buildings for rehabilitation as hotels.
Of the different tourist destinations, the most attractive has been Madrid after exceeding 40% of total investments. Although Barcelona, both archipelagos and the coast of the coast also arouse interest.
European map of hotel investment
The ‘2017 European Hotel Investor Intention Survey’ leaves excellent expectations on hotel investment in Europe.
The survey of 465 investors reveals a number of great challenges and opportunities for this year:
a. Despite the Brexit, the UK will be the country with the highest level of investment by purchase of hotel assets in 2017.
b. Germany and Spain will occupy the second and third place of interest among investors.
c. 87% of buyers want to invest the same or even more than in 2016.
d. The economic growth and the low profitability of other real estate assets represent a great opportunity for investors in the hotel sector.
e. The rapid rise in asset prices and geopolitics are the major concerns of investors.
Third year of millionaire investments
In Spain, a total of 44 hotel assets have changed ownership during the first quarter of 2017. Sales of € 710 million in investment.
Of these, 55% corresponded to urban assets, compared to 45% that were in holiday destinations.
The preferred place for these purchases was Madrid, which exceeded 35% of the total investment volume. Overtaking Barcelona that could not pass the 27% as a result of the hotel moratorium. While the Balearic Islands, the Canary Islands and the Malaga coast of the Costa del Sol were distributed another 19%.
Millions of investments in hotel establishments, tourist apartments, aparthotels, land and buildings that make them optimistic for the rest of 2017. “Currently are developing sales that will increase the volume of investment to levels recorded in 2015 and 2016,” they defended From CBRE.
Private investors and more operations
Most of the sale and purchase operations corresponded to private investors (40% of the total), compared to the chains and managers of the hotel market (20%).
Among the other investors (40%) we find from socimis to funds, banks and institutions. With protagonism for the operations millionaires and the great investors.
Among the transactions, the most recent has been the sale of the establishments Silken Diagonal and Generator Barcelona for more than 100 million euros.
While the strongest investor is Hispania. A company that has chosen to sell its portfolio of offices and homes to invest about 400 million more in hotel assets over the next few months.
