Hotel Melia Valencia, owned by Atom Hotels
The «adverse effects of Covid-19» were felt during the last three months, at a time when hotels were forced to lockdown. The effects of this lockdown are still being felt within the segment which is «generating relevant losses and a generalised environment of uncertainty», explained Spanish REIT Atom Hotels, specialised in this segment.
But the situation is now starting to show positive signs. «During the last few weeks we saw indicators which confirm a slow, but positive evolution in Spain», it can be read in the company’s quarterly report, which was just issued at the Mercado Alternativo Bursátil. According to the latest data from TravelgateX quoted by the REIT, Spain is the most active country in the world in terms of hotel reservations, with 34% of all reservations.
The truth is that the opening of the borders to tourism established by the Spanish Government last 21st of July, was a breath of fresh air for the segment which has also reopened its activity, but this time «focusing mainly on domestic tourism», revealed Atom Hotels, which reinforced that this progressive opening process is «complying with all the strict security and hygiene protocols which reinforce the customers’ confidence».
According to him, the recovery will be more visible in the hotel segment and should take place during the last quarter of the year. «It is expected that certain normality will be recovered by the end of the year, both for urban hotels and for holiday hotels in the Canary Islands (Winter is the high season in this area), taking into account the recovery of international tourists», it can be read in the document.
Since the Spanish Government declared the state of emergency, Atom Hotels has been negotiating individually with the hotel operators to «seek alternatives in terms of rental payments. The result of these negotiations was that 87% of the fixed rents for the first semester of the year were charged, around 9% were suspended by mutual agreement and only 4% were being negotiated or litigated», it revealed.
Its current portfolio is composed of 28 hotels and is estimated at 679.8 million euro and it is divided between the urban (14) and the holiday (14) segments.