Spain 2020: Hotel Investment Snapshot
Hotel investment volume in Spain in 2020 amounted to c.€960 million, -c.60% vs. 2019, with c.80 asset transactions (totalling c.8,700 rooms). Despite the significant drop in investment, since Q2 2020 due to Covid-19 pandemic, investment volume in Q1 2020 showed a positive trend, representing a +c.15% increase vs. Q1 2019.
The acquisition of individual assets represented c.75% of transactions, with portfolio deals accounting for the remaining 25%. Vacation non-urban hotels represented for c.60% of the transactions. The Balearic Islands, Barcelona and the Canary Islands were the regions which attracted most investment, amounting c.35%, c.20% and c.15% of total investment volume respectively.
Institutional investors have been the most active, accounting for c.45% of total investment, followed by family offices and private investors (c.35% of total investment). Investment from hotel companies decreased significantly with respect to the previous year, representing only c.15% of the total in 2020 vs. c.40% in 2019.
The most demanded properties have been 4* and 5* category hotels, accounting for c.70% of total investment (c.40% and c.30% respectively).