Following the release of its summary report last week, Christie & Co, an international consultancy specialising in the hotel sector, has now published its detailed findings about the evolution of the Spanish hotel sector in 2019.
- Total hotel investment in Spain amounted to €2.375 billion in 2019, around half of the total invested in 2018
- 114 assets were transacted in 2019 (vs 223 in 2018)
- the average price per room transacted rose to €142,000 (from €128,000 in 2018), thanks mainly to the high liquidity of the market, strong investment demand, the positive evolution of the hotel main indicators and the on-going compression of yields.
- The vacation sector accounted for 41% of total investment, down from 64% in 2018, mainly due to the recovery of countries in North Africa and elsewhere in the Med, Brexit, the fall out from the collapse of Thomas Cook and the absence of large portfolio transactions.
- Urban destinations accounted for 59% of total investment in 2019, up from 36% in 2018, favoured by an increase in core assets.
- Investment firms accounted for 37% of total investment in 2019, followed by hotel groups (32%) and Socimis (19%), with most capital coming from domestic investors (63% of the total vs. 35% in 2018), followed by the British (11%) and French (10%).
Christie & Co concludes its report by forecasting consolidation in the hotel market in the future as well as a stabilisation of investment levels.