According to the data available to Christie & Co, the total hotel investment in Spain in 2017 was approximately 3,900 million Euros in a total of 185 transactions, an 81% increase in the total volume of investment versus 2016, and representing an average price per room of 120,475 Euros. In terms of investor profile, the report highlights the importance of investment firms as the largest source of capital in 2017, making up 42 % of the total investment, with more than 1,300 million Euros. Hotel companies, which comprised 20% of the total investment figures, are in second place, and REIT companies close the podium with 16%. Furthermore, regarding origin, 51% of investments came from Spanish nationals, followed by US (23%), British (12%), and French (6%) investors.
The report also emphasizes how the estimated overall figure of investment has been boosted by large portfolio transactions and acquisitions of significant assets such as Blackstone's purchase of the HI Partners portfolio (630 million euros); RIU Hotels & Resorts’ purchase of Edificio España in Madrid (272 million euros); the Meliá and Starwood joint venture bought by London & Regional (230 million euros); the “Bay Hotels” portfolio participation in Barceló and the purchase of the “Alua Hotels” portfolio by Hispania; and the Hilton Diagonal Mar Hotel purchase by AXA (150 million euros), among others.
Christie & Co also highlights how interest in secondary destinations has risen this past year, comprising 14% of the total investment, and 26% of the overall transactions. Cities such as Alicante, Girona, Lugo, Almeria, Lleida, Cádiz, and Granada have generated strong investment appetite in the Spanish hotel sector due to, among other reasons, attractive investment returns in these secondary cities, a clear recovery in RevPAR levels, and new trends in terms of demand.
After years of subdued investment volumes in urban destinations, Spain continues to be a benchmark in the sun and beach segment. Popular vacation destinations have dominated 65% of the total figure, with the Canary and Balearic Islands alone obtaining 40% of the overall investment in the country.
Finally, the analysis shows how almost the 90% of the transactions carried out in 2017 were concentrated in six Spanish regions (the Balearic and Canary Islands, Andalusia, Catalonia, Madrid, and the Valencian Community), which also received 91.7% of international tourists, indicating that this can be considered a key factor for the demand concentration.
The report, which Christie & Co will look to carry out on an annual basis, concludes with a short summary of the “2018 Outlook”, including what are considered key factors for the immediate future within the hotel sector, analysing it from an economic perspective and reviewing new trends and foreign factors that could affect it