© Reuters. Hotel investment totaled 3.3 billion in 2022, 2% more, according to CBRE
Madrid, Jan 9 (.).- Hotel investment in Spain closed 2022 with 3,310 million euros, 2% above the previous year, and with the Balearic Islands and Madrid at the top of the list of main destinations, according to data from the CBRE real estate consultant.
The funds are directed, above all, to four-star hotels (46%), although the five-star and the Grand Luxury continue to show the strength of the three previous years (they account for 33% of the total).
Despite the instability generated by the sharpened geopolitical and macroeconomic events during the second half of the year, the investment figure for 2022 is 36% higher than that of 2019, before the pandemic.
The Balearic Islands led the list of main destinations, with 27% of the total investment and relevant transactions such as the Ikos de Mallorca hotel (which was sold together with the one in Estepona), the four hotels sold by KKR (NYSE:) in Mallorca and Ibiza and the 7Pines in Ibiza, among many others.
Madrid concentrated 24% of the investment movement in 2022, with operations such as the sale of 51% of the Rosewood and Bless hotels, the Princesa Plaza, the Ayre Gran Colon, the Iberostar Las Letras or the Hard Rock.
As was the case in the two previous years, investors have opted more for vacation assets (59%) than for urban ones (41%).
Of the total, 3,100 million correspond to hotel transactions and the remaining 210 million to short-stay apartments.
50% of the investors were institutional, followed by hotel groups (23%), and private investors, “family offices” and real estate companies or other sectors (24%).
The first half of the year was more dynamic in transactions and the second saw the recovery of operations, with many destinations recording historical revenues, although not profits due to the increase in costs.
CAUTION FOR 2023
For this 2023 CBRE is cautious due to the uncertainties derived from the war in Ukraine, the decrease in the purchasing power of travelers, the rise in costs and the increase in interest rates.
These factors anticipate a reduction in occupancy rates due to the transfer of the increase in costs to rates and a prudent position of many investors.
Despite this, they add, Spain continues to be one of the preferred destinations for both foreign tourists and international investors, who maintain their confidence in the hotel sector and their appetite for this type of asset.
The consultant also anticipates that the trends of recent years will continue to consolidate, such as the growth of the luxury segment, the increase in purchase and rental transactions and hotel alliances between groups (such as the cases of Iberostar with IHG (LON:) and Palladium with Wyndham).