Last year, hotel investment in Spain reached a record of €3.9 billion, thrashing the previous record of €2.6 billion created in 2015, as per the Insights on the Hotel Investment Market in Spain 2017 report.
This deal spanned both operating and converted hotels. Over 182 hotels in 2017changed hands in the country in comparison to the 147 hotels sold year before. Also, average price per room increased in 2017 to around €119,000, a 30 percent growth from the average recorded in 2016.
The amount of success the tourism sector of Spain witnessed last year happened as a result of increased investor interest. Around 82 million overseas travelers visited Spain in total. It was an increase of almost 10 percent from 2016. Conversions in terms of property investments into hotels and land sales grew by 139.8 percent annually to €478 million in response.
Majority of the investment was made in the resort sector, which experienced a 69 percent boost, performing better than the urban sector, which increased 31 percent. The sales in terms of hotel resort portfolio comprised 86 percent of the total guestrooms changing hands in last year. In the meantime in 2017, 12 portfolios with 13,008 guestrooms were sold comprising Blackstone’s acquisition of HI Partners, Hispania’s purchase of Barcelo’s stake in Socimi Bay and London & Regional’s four-hotel Sol portfolio buy from Starwood Capital.
In 2017, investment was widely distributed as investors’ recovered interest in destinations going through financial crises. For instance, investment in Malaga estimated for a 15 percent increase of the country’s total at 18 hotel sales totaling €516 million.
