Premium areas of the hospitality sector have recently received great interest from investors. In the 1st half of 2022, 5 “prime” destinations took a confident lead in demand among depositors: Madrid, Barcelona, the Balearic Islands, the Costa del Sol, and the Canary Islands.
The Colliers report indicates that together these areas have attracted €1.3 billion, representing 86% of Spain's total hospitality investment of €1.5 billion.
Among the cities in the country, Madrid is the leader, accounting for €443,000,000, which were received as a result of 9 large transactions (approx. 29% of the total). Next on the list is Barcelona, which has raised €220,000,000 in 6 deals.
In the resort real estate segment, the leaders are the Balearic Islands. The archipelago has received $293,000,000 in 12 deals. The Costa del Sol received €200,000,000, which turned out to be twice as much as the results of the 1st half of 2021. Investment in the Costa del Sol thus represents 13% of the total investment in the sector. Finally, the Canary Islands has received €146,000,000 from 4 major deals.
The urban segment of the hospitality sector attracted 57.4% of the total investments in the 1st half of the year (approx. €873,000,000). The resort segment, respectively, accounted for 42.6% (approx. €648,000,000). Colliers notes that these figures demonstrate a paradigm shift in the market which previously opted for resort areas.
Laura Hernando, Managing Director of Colliers Hospitality, points out: “In the 1st half of the year, we observed a clear rise in the premium market. According to forecasts, it is expected to have a rapid and active recovery movement, caused by the sector's recovery from the pandemic crisis. This means that today a window of opportunity has opened for the acquisition of properties that would otherwise never have been offered for sale and be in demand on the market.”