Spain Tourism Boom to Drive Increased Hotel
According to Christie + Co., the remarkable resurgence of hotel investment in Spain will continue to be a key story in 2016. This is based on their new report titled 'The Keys to the Spanish Hotel Market Recovery'.
Spain has been making headlines on the back of record-breaking levels of inbound tourism it has experienced in 2015 so far and following four years of consistent growth. Over 38 million foreign tourists visited the country in the first seven months of the year, 4.7% more than during the same period in 2014.
The news has been music to the ears of buyers, highlighted by extensive investments in existing hotels and the arrival of newcomers in prime cities and secondary markets.
Amparo Gómez-Angulo, Consultant at Christie + Co's Barcelona Office and author of the report comments, "Even amid political and economic instability, the Spanish market has been able to absorb the hotel supply as tourists continued to visit the country. Now that the hotel market has roared to life we have witnessed an increase in the flow of investment from the Middle East and China, with recent high-profile sales including the W Hotel in Barcelona to a Qatari fund, and the recent purchase of the Hotel Ritz in Madrid by a joint venture between Mandarin Oriental and the Saudi conglomerate Olayan Group."
Commenting on the hotel development boom which has taken grip of the country, Amparo says, "These new projects are spread over the country in both urban and beach destinations, with 84% of new accommodation unit projects concentrated in Barcelona, Madrid, Malaga and the Balearic Islands, and will be positioned in the 4-Star and 5-Star segments. These developments will enable the entry of new international brands currently not represented in our country, such as Hyatt or Four Seasons, and allow Spain to position itself as a more competitive destination by increasing its appeal to a more select international audience with greater purchasing power." world property journal