Spanish hotel investment reaches €3.23 billion in 2022
International hotel property adviser, Christie & Co, has published a new hotel investment analysis for Spain in 2022. The ‘Hotel Investment Overview Spain’ report reflects on key transactional market activity, trends and challenges in 2022, and looks ahead to what 2023 could bring to the Spanish hotel real estate sector.
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According to the report, hotel investment in Spain reached a total volume of €3.23bn in 2022, making it the third-best year on record behind 2017 (€3.9bn) and 2018 (€4.86bn), both impacted by the sale of several large portfolios. Alongside this, the price per room transacted reached a record €170,000, 16% higher than 2021 and 20% higher than 2019.
The analysis reveals that unlike the previous year, more than half (56%) of the assets transacted were located in resort destinations. Madrid, Barcelona and Málaga were the top destinations in the urban market, while the Costa del Sol and Balearic Island dominated the resort market.
In addition, the arrival of international brands and the repositioning of hotels increased investors’ interest in the 4- and 5-star categories, with sales of these asset classes making up c. 80% of the total investment volume. Overall, 4-star remained the leading category, accounting for 49% of total investment.
In terms of the investor profile, investment firms were once again the main players in 2022, having contributed to 59% of the total volume invested. Hotel groups were also particularly active, making up 25% of buyers (vs. 16% in 2021). Family Office and individual investors were somewhat more conservative (5%), while REITs (6%) remained in line with the previous year.
The weight of international capital was particularly significant, accounting for 72% of the total amount invested in Spain in 2022, mainly due to the fact that the main portfolios and individual assets with the largest volume were acquired by international investors.
Nicolas Cousin, Managing Director of Christie & Co in Spain and Portugal states, “We experienced a turbulent start to the year in 2022 due to the Omicron variant and the hotel market was affected by the uncertainty in the investment environment. However, Spain experienced a strong recovery in tourism demand and achieved a record price per room transacted. In our opinion, all these factors reflect the strength of our industry and the leadership of the Spanish hotel sector in Europe.”
Regarding the outlook for the coming year, Cousin predicts, “We expect a final recovery in all destinations by 2023, as well as the start of a new generalised growth path. Investment volume will again exceed €3 billion and HMA and franchise contracts will grow in double digits.
To read the full report, click here.
Media Contact:
Pilar Contreras
PR & Marketing Coordinator – Spain & Portugal
M. +34 600 054 006 | E. Pilar.Contreras@christie.com