Monday, May 25, 2020
Home Coronavirus Hoteliers in ...

Hoteliers in Madrid Warn of Massive Bankruptcies due to “Insufficient Measures” to Combat the Crisis

Hoteliers warn the Government and the Community of Madrid that the measures taken to combat the crisis are "insufficient and that the sector is in danger of bankruptcy."

The Hotel Business Association of Madrid (AEHM) has warned the Government, the Community of Madrid and the City Council of the capital that the measures adopted to mitigate the effects of the crisis are “insufficient and that the sector is in danger of bankruptcy”. That is because the region’s hotel establishments are not generating any revenues due to their widespread closure due to coronavirus but they continue to face expenses.

Although the trade association is grateful to the different administrations that have put in place measures aimed at relaxing the rules, it assures that “we are firmly convinced that they are not the only ones that could have been adopted to help mitigate the impact of such a magnitude that it threatens to force many businesses in the sector into bankruptcy, with the tremendous effect that that would have on the regional economy”.

- Advertisement -


What was Happening in the Housing Market in Spain Before Covid-19?

House prices in Spain grew slightly during the first quarter of 2020, whereby maintaining the upward trend registered over the last five years, although they were showing signs of peaking.

The Rental Home Market in Spain Continues to Rise

The gross yield on rental housing stood at 6.81% for multi-family properties and 5.61% for single-family units in Q1 2020, according to data collected by BrainsRe.

The Retail Crisis of 2008 Lasted 5 Years and the Price of Premises Fell by 33%: How Much Will They Fall by during this New Crisis?

The Covid-19 crisis has come at a time when the prices of commercial premises have not yet recovered from the previous recession, the consequences of which lasted for five years.

The 2008 Crash Lasted 7 Years and Industrial Property Prices Fell by 40%: What will Happen in this Crisis?

By last year, industrial assets had recovered only 17.5% of the value that they lost during the 2008 real estate crash, after dipping to minimum levels in 2014. According to the College of Registrars, the average transaction price was €527/m2 at the end of 2019.

Latest news

The Real Estate Sector Post-Crisis

Real estate experts are in no doubt about the footprint that coronavirus is going to leave on the sector. Highlights include greater digitialisation, new investment opportunities and higher productivity.

Aedas Finalises the Refinancing of a Syndicated Loan for €150 Million

The property developer is negotiating the financing for €150 million with Citi, Goldman Sachs, Deutsche Bank, EBN and Liberbank.

Investment by Spaniards in Housing has Risen by 50% Since 2014, Exceeding that of any Other Asset

'Weak' population growth and the high stock of unsold homes will limit the growth of the supply of real estate, warns the Bank of Spain.

Vivenio Asks to Carry Out a €7.2 Million Capital Increase

The Socimi will take the proposal for two capital increases amounting to €3.3 million and €3.9 million to its General Shareholders' Meeting, which is scheduled for June.