© Reuters. Hotel investment was around 3,300 million in 2022, according to consultants
Update EC1101 with information from the consultancy Colliers
Madrid, Jan 9 (.).- Hotel investment in Spain in 2022 was around 3,300 million euros, between 2% and 3% above 2021, and the Balearic Islands and Madrid topped the list of main destinations, according to data from the real estate consultancies CBRE and Colliers.
As already happened in the two previous years, investors have opted more for vacation assets (58-59%, according to the consultants), than for urban ones (41%), despite the “spectacular” volume of investment in Madrid.
According to CBRE, the investment has reached 3,310 million and the funds are directed, above all, to four-star hotels (46%), although the five-star and luxury hotels continue to show the strength of the three previous years (they account for a 33% of the total).
For his part, Colliers places investment for the year just ended at 3,279 million (considering hotels in operation, properties for conversion into hotels and land for hotel use), the third best record in the historical series.
He points out that last year 133 hotels and 17,754 rooms changed ownership (127 and 19,043, respectively, in 2021) and another 30 assets were transacted between land for hotel development and real estate for conversion to hotel.
The vacation segment was the most sought after in 2022 by investors, who focused, above all, on the Balearic Islands and Madrid, to the detriment of Barcelona, and with Malaga in third position, ahead of the Canary Islands. Seven operations exceed 50 million in volume, according to Colliers.
Despite the instability generated by the geopolitical and macroeconomic situation aggravated in the second half of the year, the investment figure for 2022 is 36% higher than that of 2019, before the pandemic, says CBRE.
The Balearic Islands topped the list of main destinations, with 27% of the total investment and relevant transactions, while Madrid concentrated 24% of the investment movement in 2022.
Colliers places the investment figure in the Balearic Islands at 913 million and that of Madrid at 803 million, the best historical record, and more than triples the figure of Barcelona (225 million).
The province of Malaga, the preferred destination in recent years for hotel investment, has superseded the Canary Islands, with an investment volume of 572 million. In the Canary Islands, six transactions were made for 175 million.
The average prices per room of the transacted hotels have once again set all-time highs, standing at 168,800 euros per room (7% more than in 2021), driven by the sale of numerous “prime” assets, explains Colliers. The Rosewood Villa Magna and the Bless Hotel Madrid exceeded one million euros per room.
72% of the capital invested is foreign, according to Colliers, who highlights investors such as the Socimis Millenium and All Iron at the national level.
CAUTION FOR 2023
For this year, 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, factors that anticipate a reduction in occupancy rates for the transfer of the increase in costs to the tariffs.
This year begins, says Colliers, with a “good inertia” of operations, especially in first class assets, despite the uncertainty derived from the rise in rates and the consequent increase in the cost of financing.