According to the consultants Irea, although the figure is 16% less than that recorded the previous year, it s the second best year in history. The investor profile has changed considerably since 2015, when the SOCIMIS (basically Hispania and Merlin) were the leaders and where the investors in the portfolio of assets came to half of the total volume of investment.
In 2016, transactions of individual assets clearly dominate and extend in a general manner over the whole country, given the tendency in the last few years where there has been a greater concentration in traditional investment destinations. Of importance is the increase in the number of hotels sold so far in 2016 (97 hotels vs. 83 last year), though the average number of rooms dropped considerably from 214 to 142.
In terms of geographical distribution, Madrid leads in investment for the second consecutive year with 310 million euros, followed by Barcelona with 302 million euros (the two capitals together have 45% of total investment). In third and fourth place are the Balearic and Canary Islands with 206 and 198 million respectively. While the Balearics have similar totals to 2015, the Canaries have returned to more moderate volumes after the elevated investment volume of 2015, when it became the principal destination for investment in Spain that year.
Finally, the increase in importance of secondary destinations on real estate totals should be noted. In 2016 hotel investment was spread across 68 municipalities, compared 44 in 2015 and 25 in 2014, which consolidates market normalization in the hotel investment market in Spain. It can be seen how investment has reached areas such as Gijon, Oviedo, Orense, Lugo, Granada and Alicante where no significant activity has been recorded in recent years.
Investor profiles have also changed notably since 2015, when the SOCIMIS were absolutely dominant, with almost 50% of the total hotel investment in Spain. This year they fell to second place with 85 million euros invested (6.2% of the total invested), while other categories grew, such as international investors and hotel chains and national investors.
International investors have invested a total of 585 million, practically double that of last year, and the leaders were the Dogus Group buyer of the Hotel Villamagna in Madrid and Westmont Hospitality, with a majority participation in the Torre Agbar in Barcelona.
As for the national chains, these have invested 276 million in the purchase of a total of 32 hotels. Of these, Hotusa stands out as the most active group after the purchase of 5 establishments in the first nine months of the year.
National investors have invested 304 million euros. In this category can be highlighted HI Partners with the purchase of 7 hotels though the year, mostly in the vacation segment.
The interest of investors in hotel assets is exemplified by the high levels and Irea estimates that, with the end of year effect, if some of the projects currently on the market are finalised, the market could exceed 1,800 million at the close of 2016.