hospitality Market News: Spanish Real Estate Intelligence

Commerz Real Purchases an Office Building in Barajas to Convert into a Zleep Hotel

21 January 2020 - El Inmobiliario Mes a Mes

Commerz Real has purchased a 10,000 m2 office building near to Madrid airport from Inmobiliaria Valtiendos for an undisclosed sum.

The property is located on Avenida de Aragón in the Ciudad Pegaso business park and is going to be converted into a 2-star hotel, containing 280 rooms, which will operate under the Zleep Hotels brand. Work on the conversion is scheduled to start this year and be completed in 2021.

Catalonia Hotels Buys La Maquinista Hotel in Barcelona for €11.5M

20 January 2020 - La Vanguardia

Catalonia Hotels & Resorts has acquired Hotel La Maquinista in Barcelona, located next to the shopping centre of the same name. The 3-star property has 92 rooms and was purchased for €11.5 million.

Following this operation, Catalonia now owns twenty-six 3- and 4-star hotels in the Catalan capital and more than 70 establishments around the world, with a focus on Spain. The firm is planning to open several hotels in new locations this year, including in San Sebastián, Bilbao, Málaga as well as a holiday resort in the Caribbean.

Original story: La Vanguardia

Translation/Summary: Carmel Drake

Christie & Co: Spain & Portugal Still Ripe for Urban Hotel Investment

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