Spanish Hotel Sector Q3 2023
After the post-pandemic years in which mobility between countries and cities within the same country was very limited, and therefore the hotel sector was severely affected, we can ratify the recovery of tourism in Spain during the third quarter of the year. Historic results have been recorded, reaching more than 85 million visitors during the summer months. In addition, Madrid and Barcelona are among the top 10 European cities that attracted the most tourism during this period.
Spanish hotel market was the most active during the first nine months of the year, reaching a transaction volume of more than 2 billion euros. In terms of investor profile and location, Middle Eastern investment funds accounted for more than 60% of the total volume and approximately half of the investments were made in urban areas such as Madrid (23%) and Barcelona (23%), while the vacation sector accounted for around 45% of the total.
On the other hand, new openings are mainly concentrated in the Balearic Islands and Madrid, accounting for around 40% of the total new openings.
This growth in demand is reflected in key operating results, confirming this recovery and even surpassing the results of 2019 (pre-pandemic). Specifically, ADR (Average Daily Rate) and RevPAR (Revenue per Available Room) are around €114 and €83, respectively, through September.
Among other major transactions this year, Meridia Capital has acquired the 4-star ‘Gallery’ hotel in Barcelona from the Gómez Casals family for around €50 million, and Swiss Limestone Capital has purchased the 44-room ‘Axel’ hotel in Madrid from HIP for €35 million. However, the largest hotel transaction (around €600 million) was concluded by the Abu Dhabi Investment Authority (ADIA) with the purchase of a 17-hotel portfolio owned by the Equity Inmuebles fund.