More than 30% of real estate investment in Spain is currently concentrated in hotels, particularly those that offer high-end services. This according to the latest report by consulting firm CBRE, which specializes in real estate solutions for large investors. As experts in the planning and management of luxury resorts, we’ve analyzed the data at Arum Group and would note that in the first nine months of 2023, €2.2 billion were invested in the construction or refurbishment of hotel establishments.
The sector’s status as a dynamic focus of investment is not surprising if we consider that Spain remains classified as one of the best destinations in the world, thanks to its geographical location, its cultural and gastronomic attractions, and its climate. The latest study by the cybersecurity company NordLayer ranks Spain the fourth-preferred country for digital nomads to settle during their remote work seasons. This data is backed by the trend in the hospitality sector of offering furnished villas and apartments with services included for guests who seek more than a weekend getaway.
In the third quarter of 2023, the economic sector that raised the most capital was the hotel sector, with a volume of €790 million (35% of all real estate investments), and the company that contributed the most to this figure was the Abu Dhabi Investment Authority (ADIA), which acquired a portfolio of 17 hotels for more than €600 million.
Investors are looking for high-end hotels that are classified as four- and five-star. In terms of location, they are gravitating towards urban areas with broad international visibility, like Barcelona and Madrid, and holiday destinations like the Balearic Islands and Malaga.
As for the portfolio of pipeline projects, CBRE highlights the opening of 275 new hotels by 2024. It is noteworthy that 23% of these are 5-star and 5-star GL (Grand Luxury), a backing of quality tourism that could open a window of opportunity for real estate. Our experience as a property developer has demonstrated that many travelers thinking of establishing their second residence in southern Europe make a first exploration as tourists. Thus, real estate investment in Spain with a focus on the hotel sector is strengthening itself as an interesting economic driver for a variety of related industries.
