Hotel investment reached €1.393 billion in the first half of the year, keeping in line with the figures for the same period in 2023, according to the Hotel Investment in Spain report prepared by Colliers.
In the first half of 2024, a total of 8,350 rooms were traded in 71 transactions, with 53% of the volume going to the urban segment, breaking the trend of the last five years.
In addition, five-star and five-star grand luxe hotels (GL) represented 33% of the investment, with a volume of €460 million. The most important transaction in this segment was the purchase of the Six Senses Ibiza by the Italian investor, Gruppo Statuto, which broke all price records in Spain by exceeding €1.5 million per room.
By destination, the Balearic Islands led the investment with 30% of the total, registering 12 transactions for a total volume of €415 million. Ibiza and, specifically, the northern area of Portinatx, where two hotels have been transacted, stood out this year. The most noteworthy deal is the aforementioned acquisition of the Six Senses Ibiza hotel by Gruppo Statuto.
Barcelona is second with a total of 13 transactions and €300 million, highlighting the purchase by the Spanish Real Estate Investment Trust (SOCIMI), Atom, with a portfolio of two five-star grand luxe hotels, the Hotel Miramar and the Gran Hotel La Florida.
In total, 145 rooms were acquired for €50 million. Both hotels will be refurbished to adapt them to the brand standards of the new managers, Hyatt and Sunset Hospitality, respectively.
The report highlights that Madrid continues to suffer from a shortage of available products for sale, which has resulted in a reduction of investment to eight transactions. The purchase of the Hotel Mayorazgo in Gran Vía by the Mallorcan hotel group Grupotel was the most significant transaction in the first half of the year.
In the urban market, the most significant transactions took place in provincial capitals such as Malaga with five deals for €100 million, while in Granada, three transactions were recorded for a volume of close to €30 million.
In Alicante, the Eurostars Lucentum was sold for €29.9 million and, in Seville, Extendam acquired the Hilton Garden Inn, while in Las Palmas, Gran Canaria, the Lopesán chain acquired the Hotel AC Iberia in a transaction advised by Colliers.
Looking ahead to 2024, the managing director of Hotels at Colliers, Gonzalo Gutiérrez, expects hotel investment in Spain to reach normal levels of €3 billion, even though no major portfolio transactions are on the horizon, such as those carried out by ADIA and GIC last year.
Portfolio transactions are down
Another feature that sets 2024 apart is the lower number and relevance of portfolio transactions, as only 21% of the total volume corresponds to asset portfolios, compared to 62% last year.
The two most relevant deals were Atom's transaction on Miramar and Florida hotels in Barcelona and the acquisition by Moon GC&P, a vehicle owned by Banco Santander, of a 38.2% minority stake in a portfolio of three five-star hotels owned by Meliá, in a transaction valued at €300 million.
The buyer profile in 2024 has differed significantly from that of previous years. While in recent years international investors, especially private equity investors, focused on value-added transactions, this year, transactions carried out by national investors of various types stand out: hotel groups, family offices, private investors, investment funds and SOCIMIs, which represented 57% of the investment.
