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hospitality Market News: Spanish Real Estate Intelligence

Armabex: The MAB's 44 Socimis Have a Combined Asset Value of €12.2bn

12 December 2017 - Eje Prime

The Socimis are still a major talking point in the Spanish real estate sector. Together, the more than forty Socimis that are listed on the Alternative Investment Market (MAB) own assets with a combined market value of €12.221 billion, according to the report Armabex Analysis II. This year alone, seventeen new Socimis have been incorporated onto the MAB.

According to the findings of the report, the average market capitalisation of all of the Socimis currently listed on the MAB amounts to more than €155 million and their average own funds represent 62%. “The Socimi has become a fundamental element in the growth of the real estate market”, explains Antonio Fernández, President of Armabex.

Of the Socimis currently listed on the MAB, 31 have offices and homes amongst their properties available for rent and their market value represents 42% of the total. In 2017, nine of the seventeen new Socimis that debuted on the MAB held both types of assets in their portfolios.

Nevertheless, shopping centres, gas stations, hotels and industrial warehouses have also found the perfect vehicle to list on the MAB in the form of Socimis. In fact, in 2017, there was an increase in the number of shopping centre Socimis (five more in 2017); the first Socimis to include warehouses made their debut (also five in 2017); and the first gas station Socimi made its debut on the MAB along with three new hotel Socimis, amongst others.

By investment destination, Madrid has consolidated its position as the Spanish province in which Socimis invest the most in 2017. In this sense, thirteen of the seventeen new Socimis that started to trade in 2017 own real estate assets in Madrid. In this way, the 32 Socimis listed on the MAB that own assets located in the capital, have real estate assets worth €5.684 billion, which account for 46% of the total asset valuation.

Meanwhile, the evolution in Barcelona has been less satisfactory than expected; the portfolio of assets located in that province owned by the Socimis account for 11% of the total asset valuation, or €1.364 billion. Only five of the seventeen new Socimis that joined the MAB in 2017 own real estate assets in the Catalan capital.

Original story: Eje Prime

Translation: Carmel Drake

 
Banco Santander Puts Hotel Koral up for Auction

6 December 2017 - Levante EMV

Banco Santander has put Hotel Koral, located on the beachfront in Oropesa del Mar, up for auction for €7 million. The establishment has 210 rooms and a swimming pool. The auction is open until 11 December.

The bank took ownership of the property as the result of a debt that it had granted to the previous owners, amounting to €2,127,677. Moreover, the property has another charge over it in the form of an unpaid loan amounting to €700,000 from Cajamar, according to sources close to the operation. The investor that offers the highest bid will acquire the property free of charges. All of the information about the bid is available on the BOE’s auction website.

The electronic auction opened on 21 November. The value of the auction is €7,082,465 and interested parties must pay a deposit of €354,123. According to information provided yesterday on the BOE’s auction website, no bid has yet been formalised for the property.

The building is located on the new promenade in the Tosalet de Oropesa area. The hotel is a ten-minute walk from the centre of Oropesa. The establishment offers 210 rooms with views of the sea or the pool, which is located in a garden area with sun beds and parasols.

The bank has put the property on the market at a time when there is a great deal of investor interest in hotels. Hotel profitability has grown by 32.5% in Valencia due to the strength of international tourism and the recovery in domestic consumption, according to a report by the consultancy firms STR and Magma Hospitality Consulting.

The growth in hotel profitability in the Community of Valencia is much higher than in Madrid (18.6 %), Málaga (15.38 %), Barcelona (14.6%), Marbella (14.5 %) or Sevilla (14.4 %). The strong performance in terms of profitability is being seen despite competition from tourist apartments, which are being marketed through online platforms such as Airbnb.

The barometer from STR and Magma HC is based on data from 145,000 rooms in more than 800 hotels located all over Spain. Data corresponding to the first half of 2017 shows a very positive trend with double-digit growth for the main indicators in key destinations and a general upward trend in terms of average revenues per available room (RevPAR) and in the average price per occupied room.

The good context for divesting has led other banks to follow the same path. Banco Sabadell has just sold its hotel manager HI Partners for €0.63 billion to the US fund Blackstone. That operation included a portfolio of fourteen hotels worth almost €0.7 billion, including the Abba Acteón in València and the Melià Villaitana in Benidorm (…).

Original story: Levante EMV (by Ramón Ferrando)

Translation: Carmel Drake

 
CaixaBank Wants to Grow Its Tourism Business by 20%

11 December 2017 - Expansión

CaixaBank is stepping down on the accelerator in the tourism sector. The bank chaired by Jordi Gual has launched CaixaBank Hotels & Tourism, a specialist business line that is seeking to increase both the number of clients and the financing granted to the tourism sector, which has a global impact of 16% on Spain's GDP. According to the entity, two out of every three hotels are already clients of CaixaBank, which has a market share of 63%.

The objective that the team of 30 professionals in the Hotels & Tourism team has set itself is to increase turnover by 20% during the first year of activity, accelerating both the number of new clients and the loan book.

CaixaBank Hotels & Tourism started to take shape in 2008 when a specialist team was established in the Balearic Islands. Now, that division has its own brand and a portfolio of more than 14,000 clients, from which it generates a turnover of €5 billion.

In 2016, the bank led by Gonzalo Gortázar granted loans worth €1.3 billion to the tourism sector. It plans to multiply that figure over the coming years with the launch of this specialist unit.

According to the Director-General of CaixaBank’s business, Juan Antonio Alcaraz, the challenge is to promote the modernisation of the existing hotel stock and to facilitate financing to business-people in the sector to enable them to buy hotel assets and undertake new build projects.

CaixaBank is not the only entity to launch a specific division for this sector. In 2014, Banco Sabadell launched Sabadell Negocio Turístico, a unit that has allowed it to increase its net investment balance at an annual rate of more than 10%.

According to Alcaraz, the 30 specialists working for CaixaBank's new line of business, are located in those areas of the country that have the most tourist weighting to ensure proximity to clients and the provision of a personalised service. “We want to help businessmen in the sector maintain their position of global leadership”, said the executive, who emphasised that tourism “is one of the most strategic and important areas of the Spanish economy”.

According to CaixaBank’s research service, the direct and indirect contribution from tourism to GDP amounts to €119 billion, equivalent to 11.1% of the total. Nevertheless, if we add the spending that all of the players involved in the tourism sector make in other economic sectors, then the global impact reaches 16% of GDP, well above the European average, of 9.6%. More than 2.5 million people are employed in the sector.

Specialisation

CaixaBank Hotel & Tourism forms part of the bank’s corporate banking area, which has opted to launch several specialist lines of business to cater for economic sectors. For example, the entity has units dedicated to the real estate sector – fourteen centres – and the agrarian sector, with more than 900 AgroBank branches. It also has fourteen large business centres – one in each territory – business centres dedicated to dealing with businesses, self-employed people and professionals, and 106 company branches for other firms. It has also just launched CaixaBank Day One to deal with the specific needs of startups.

Spain is just a step away from overtaking France as the most popular destination in the world for tourist visits. Provided that the Catalan political situation does not intervene, forecasts suggest that this year could close with more than 84 million tourist visits.

Original story: Expansión (by S. Saborit)

Translation: Carmel Drake