The cost of hotels with 80 rooms or more ranges from 15 to 50 million euros.
How has the local and hotel tourism sector changed in real estate interest? The pandemic has created rent-limiting laws, new tax paradigms, and changing trends. At a time of uncertainty caused by the COVID-19 crisis, the confidence offered by the market is fundamental to investing in one of the few sectors that ensures profitability today: real estate investment. In this regard, the law firm CIM Tax & Legal and the real estate consulting company Laborde Marcet have presented their analysis of changes in the real estate sector since the beginning of the pandemic and their forecasts for investments, the most profitable segments and the applicable taxation.
There is still interest in buying hotels in Spain. Barcelona, Madrid, Marbella, Malaga, Palma, Bilbao and San Sebastian are currently showing strong demand from investment funds, both in urban areas and in resort locations. Hotels with 80 rooms or more at a price of 200,000 to 600,000 euros per room are the most popular ones, depending on the location. This means that the total cost of the hotel is between 15 and 50 million euros.
Gerard Marsay, founding partner of Laborde Marcet, emphasised that "the priority for most investors is to minimize risk and focus on the most stable assets with a yield of 3% to 6%, without the effect of financial leverage, which can increase this yield to 8.5%." "The retail segment, with the residential sector, is the one that we expect to register the highest demand in the coming months due to the resurgence of consumption and the return of tourism. The uncertainty will delay the recovery of the rest of the segments until 2022," said the expert, who expects "a rapid recovery in demand for premises from retailers over the coming year."