In 2018 the total investment volume registered in Spain reached close to €5bn, which represented an estimated 24+% increase on the previous year. 1
With a total of 223 hotels transacted in 2018, the 4-star category accounted for 58.3% of the total assets, followed by the 3 and 5-star categories which represented 16.1% and 13.5%, respectively.
Whilst the source of capital was mostly domestic in 2017, international investment represented 66% of the total investment, with the United States (40%), Thailand (8%) and Mexico (4%) being the main nationalities.
Overall, the largest players were investment companies (53%), hotel companies (24%) and REIT’s (14.6%). It is estimated that three large transactions generated more than half of the total invested (56%).
These include the acquisition of the Hispania portfolio by Blackstone (€1.9bn); the purchase of 24 assets by the REIT Atom Hoteles (€426m); and the integration of NH Hotel Group into the Thai hotel company Minor International (€385m).
In line with the results of the previous year, the interest for secondary destinations in 2018 remained on the rise, reaching a total investment volume 65% higher than the 2017 results.
From a geographic perspective, investors favoured holiday destinations (64% of the total investment), reflecting Spain’s position as a leading investment destination within the Mediterranean resort market.
In addition, 93% of hotel investment was concentrated in six regions, with the Canary Islands (29.6%) at the top, followed by the Balearic Islands (21%) and Andalusia (16.5%).
1 - €4.8bn
Read the full report here.
