Hotel investment in Spain hit €4.05 billion in 2023, exceeding €3 billion for the third consecutive year, a report by Christie & Co has revealed.
This marks Spain’s second-best year ever after 2018, as nearly 21,630 rooms transacted at an average price of €187,000, 10 per cent higher than in 2022.
67% of the assets transacted were located in resort destinations, with the Canary Islands dominating the resort market. In the urban market, Madrid, Barcelona and Malaga remained the top destinations. 4-star hotels accounted for 65 per cent of total investment
In terms of the investor profile, investment firms were the main players in 2023, having contributed to 82 per cent of the total volume invested. Hotel groups were more conservative compared to the previous year, making up 11% of buyers, compared to 25 per cent in 2022. Family Office and private investors remained in line with the previous year and accounted for 7 per cent of total investment.
International capital accounted for 78 per cent of the total amount invested in Spain in 2023, mainly due to the fact that the main portfolios and individual assets with the largest volume were acquired by international investors.
Looking ahead, Christie says investment volumes in the first quarter of 2024 are expected to exceed 2023 figures.
What they said
Alberto Martín, associate investment director of Christie & Co in Spain and Portugal says: “The first quarter of 2024 will exceed the investment volumes achieved in 2023 driven by the year-end trend, current transactions in the final stages of closing and strong interest from international investors, although national investors are expected to play a greater role in 2024.”
Nicolas Cousin, managing director of Christie & Co in Spain and Portugal added: “Spain is consolidating its position as one of the most attractive hotel investment markets in Europe. While the main destinations have been the focus of investment, we are seeing growing interest from investors and hotel chains in provincial capitals and secondary destinations.”