Hotel investment in Spain in 2015 is set to surpass the €1.6 billion recorded at the peak of the previous cycle in 2006, with global investors from the Middle East, Asia and the U.S. targeting the market, according to the latest research from global property advisor CBRE.
Investment into Spanish hotels in 2014 was the highest since the property crash of 2008, up 63.4% on the previous year and reaching €1.09 billion.
The hotel share of all commercial real estate investment subsequently increased from 5.7% to 8%. Investor appetite has remained unabated into 2015, with transaction volume surpassing €700 million for Q1 2015 and up 283% on the same period of the previous year.
Domestic investment into Spanish hotels remains significant (54% of 2014 Spanish hotel transaction volume) with some capital allocated through the recently created SOCIMIs (sociedades cotizadas de inversión en el mercado inmobiliario; Spanish REITs).
Additional inbound capital has included purchases by Qatari and Chinese investors; generally targeting trophy assets. This includes the recent trade of the Hotel Ritz in Madrid, purchased by Mandarin Oriental and the Saudi Arabian multinational; Olayan Group in a JV.
For more information on the Spanish hotels market, please download the full report here.