20 January 2020 - Hotel Management
According to a study conducted by Christie & Co, hotel investment in Spain and Portugal has not yet reached its peak, with the appetite for urban hotels expected to grow during 2020.
The study is based
on a sentiment survey performed by the consultancy firm, which revealed that the
majority of respondents believe that the market is more attractive today than
it was five years ago.
In particular, the Iberian market is boosted by low interest rates, the high fragmentation which still exists within the hotel segment, the growing interest for the secondary markets which offer higher yields and the existence of certain framework agreements between investors and hotel operators
According to Christie & Co, the city markets in Spain performed well in 2019, with Madrid leading the charge, accounting for 18% of all hotel investment. Urban destinations are set to surpass the resort destinations in terms of investment during 2020 and interest in secondary cities is also expected to remain strong.
In addition, leasehold sales experienced an increase in terms of the number of leases signed in 2019. They continue to be the preferred agreement between owners and operators in Spain.
The assessment was similar at CBRE, which reported that hotel investment in Spain was down 51% on the year in 2019, but remained at record levels. CBRE said that volumes had reached €2.5bn in 2019, with 126 hotel assets traded.
Original story: Hotel Management (by Katherine Doggrell)
Translation/Summary: Carmel Drake