Spanish asset management company Mazabi is finalising investments worth around €460 million in European real estate with a heavy focus on the hospitality sector.
The family wealth specialists are looking to spend more than €200 million on hotels, according to the website Brainsre.news. Some of the deals are close to closing while others are at the due diligence stage. In particular Mazabi is looking at holiday hotels in places like the Balearic and Canary islands.
"We look at hotels because we believe that when the crisis passes, tourism will increase and with higher quality travellers in Spain,” CEO Juan Antonio Gutiérrez said.
Mazabi invested around €400 million in 2020 and has around €1.7 billion in assets under management.
Leisure Backing
Mazabi’s focus on the leisure sector makes sense given the long-term fundamentals of the sector. While Covid-19 might have drastically reduced tourism across much of the globe, it seems sensible to assume it will rebound once restrictions are lifted. Not only have families and individuals in wealthy western countries been able to save money during the period, but having been confined to their houses many will want to do the things they’ve been unable to do, such as travel.
Investors will be keen to tap into this potential, but as Gutiérrez told Brainsre.news, dealmaking is not necessarily straightforward.
“[W]e have not seen significant price drops ,” he said. This divergence may not be fixed until governments start to withdraw the support they have offered businesses.