The luxury sector is running this first half of 2023 as the great protagonist of hotel investment, with more than half of the total volume of investment in hotels being located within the 5-star and 5-star Grand Luxury categories. Specifically, of the 1,383 million euros invested in Spain between January and June, 717 million corresponded to the luxury sector.
As regards the origin of the investments, foreign agents led the market, monopolizing businessmen from outside Spain with 63% of the total investment. The two Spanish cities that have competed to be the most invested urban destination have been Madrid and Barcelona, with the Catalan capital finally surpassing its competitor by two large transactions.
A report published by the Colliers hotel team has stated that the volume of hotel operations has reached a total of 8,316 rooms in transactions corresponding to 62. Of all these, 52% would correspond to the luxury sector.
Prime assets to face instability
Continuing the trend observed since the start of the pandemic, investors have made a strong commitment to quality assets and have focused on this segment, “which has proven to be highly liquid and resilient in times of maximum uncertainty,” according to experts. . Destinations such as Barcelona, Ibiza, Sitges or the city of Madrid are positioned as favorites in this type of operation.
5-star Grand Luxury hotels have represented 21% of the total investment and 5-star hotels 31%, representing a total of 717 million euros, representing more than half the volume invested in the hotel sector during the first semester of the year.
The operations carried out at the Hotel Sofia and the Hotel Mandarin, both in Barcelona, stand out in terms of volume. In addition, there have been eight other transactions in the luxury segment, among which the purchase by the Italian group Statuto of the W Ibiza -fruit of the reconversion of the old Orquidea aparthotel– to Scala Capital stands out.
There has also been the acquisition of Dolce Sitges for 63 million euros by Perial, which will be operated by Hotusa, as well as the divestment by the Oriol family of the Autograph Collection Palacio del Retiro, acquired by the family office of Jon Riberas ( Gestamp) for around 60 million euros.
Barcelona surpasses Madrid
At an urban level, Barcelona resumed leadership with a total of five operations worth 459 million euros, widely beating Madrid, which after a historic 2022 influenced by the closure of numerous large-volume operations, is giving up part of its prominence.
Thus, in this first semester, Madrid has registered six transactions worth 123 million euros. The investment volume achieved in Barcelona is boosted by two important transactions on luxury assets, the Hotel Sofía and the Hotel Mandarín, both for around 200 million euros.
In the holiday segment, the main Spanish sun and beach destinations (Balearic Islands, Canary Islands and Costa del Sol) concentrated 49% of the investment with a total volume of 684 million euros. The Balearic Islands is positioned as the leader of the semester with 15 operations, more than 2,000 rooms and 400 million euros, thanks to the intense activity in hotel portfolios in the archipelago.
For their part, the Canary Islands have registered seven transactions worth 174 million euros, while the Costa del Sol has seen a reduction in the number of hotel transactions carried out in the first quarter (4) with a total of 110 million euros. .
Spain, under the gaze of international investors
International investors, with 63% of the total investment in the first half, remain clear protagonists from the buying side, continuing the trend of recent years.
From Colliers it is ensured that a relevant part of the exposure has been channeled by insurers and sovereign wealth funds, “investors with a more patrimonial vision, less to the debt market and more moderate capital return requirements”.
From the selling side, the role of international investors has also been very important, concentrating 71% of the total sales registered in the first half.
“The dynamism in the luxury segment and the inertia of important transactions keep volumes normal in a year that is proving to be especially difficult for investors. Despite the economic uncertainty and its potential effects on the tourism sector, the excellent fundamentals of the Laura Hernando herself.
