Spanish residents accounted for 64% of room nights in their home market in July, according to the country’s statistics office.
The fall in overseas guests was expected to trigger deals in Spain, with a survey last week from Deloitte Spain reporting that 40% of hotel executives thought investors would seize on the crisis to buy hotels in difficulty.
In July, the country’s statistics office reported that 52.7% of hotels were open, attracting 4.3 million travellers with a total of 11.5 overnight stays. These figures represented 35.7% and 26.6%, respectively, of the estimated totals a year ago. Four-star hotels were the most visited, followed by three-star.
The length of stay fell 25.5% on the year, standing at 2.7 overnight stays per traveller and prices were down 8.2%.
In the first seven months of 2020, there were 55.6 million overnight stays in Spanish hotels, 71.1% less than the same period for 2019.
Travellers from the Germany and the UK accounted for 25.1% and 15.2%, respectively, of total overnight stays of non-residents in hotel establishments in July. The German market was down 79.4% on the year, and the British market a 91.4%. Overnight stays of travellers from France, the Netherlands, and Belgium were down 72.6%, 75.4% and 71.7% respectively.
The data came as TUI UK pulled back from the country, commenting: “Due to the continued UK Foreign Office advice against all but essential travel to all areas of Spain, TUI UK hаs extended holidаy cаncellаtions to mаinlаnd Spаin аnd the Bаleаric аnd Cаnаry Islаnds up to аnd including 13 September.” Spain has been on the UK’s quarantine list since the end of July.
The market has continued to attract both brands and investors, with the news that the Byblos Hotel in Mijasm was to join The Unbound Collection by Hyatt in early 2022.
The property, which has been closed since 2010, will be redeveloped into a luxury 200-room resort.
Hyatt has entered into a franchise agreement with Intriva Capital European Principal Investment Fund. The site will be managed by Marugal Hotel Management.
“We are delighted to collaborate with Intriva to redevelop and rediscover the splendour of this famous building and welcome it into The Unbound Collection by Hyatt portfolio,” said Nuno Galvao Pinto, RVP development Europe, Hyatt.
“The illustrious past and distinctive architecture of the hotel make it a perfect fit for the brand and we expect it to be a truly exceptional addition this collection of storied hotels. We look forward to further growing this exciting independent brand across Europe, inviting guests to create story-worthy experiences at unforgettable properties.”
Last year saw investment in Spain full back from previous highs, reaching €2.5bn, 51% less than in 2018 and 24% less than in 2017, according to CBRE.
Head of investment properties for Continental Europe at CBRE Hotels, Miguel Casas, said: “The Spanish hotel segment closed a year of moderate trade, with levels of investment similar to those of 2015 and with significant changes in terms of the investors’ behaviour when compared to 2018.”
Individual assets represented 72% of all investment, whereas assets belonging to portfolios represented 28%, 65% less than in 2018. Many investors opted to invest in urban assets (51%), while the holiday segment decreased to 49%. In terms of the investors’ profiles, hotel groups represented 32%, followed by private and family office investors and institutional investors, both with 29%.
Four-star hotels attracted 59% of investment, followed by three star hotels with 15% and five-star hotels with 7%.
Insight: Spain had come off the priority list for investors after Blackstone piled in and bought everything, with assets becoming just a bit too expensive and attention turning to locations where it was hoped that there might be bargains to be had.
The hope of bargains has now returned and the oft-described wall of money is building around the country, sniffing for distress. Thus far the sector has been protected by government support, after Spain’s hospitality association estimated that between 55,000-85,000 establishments might never open again and an aid package of more than €4bn was duly forthcoming.
Will the aid last as long as the pandemic is the question playing out around the world. But in Spain, attention is not only on the country’s hotel assets, but its hotel operators. Consolidation is coming and NH Hotels Group and Mélia Hotels International would a tasty treat for many with global ambitions.