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Hotel Investment in Iberian Peninsula | October 2019

According to a joint report by Cushman & Wakefield and CMS, hotel investment remained high in Spain last year, with figures showing total deals worth EUR 3.7 billion. However, this represents an 18.7% YoY drop following Spain’s record year in 2017, where investment totalled EUR 4.6 billion.

Making up the lion’s share of last year’s figure was US investment fund Blackstone’s acquisition of a Hispania portfolio for almost EUR 2 bn. The package included 42 hotels housing close to 13,000 bedrooms, many of which at beach resorts.

The biggest deals in Spain over the last five years are as follows:

TOP 5 HOTEL DEALS IN SPAIN (2014 - 2019)

Year

Portfolio

Seller  

Purchaser 

Purchaser’s origin

Amount (in EUR million)

2018

Hispania

Hispania

Blackstone

US

1,787

2017

HIP

Banc Sabadell

Blackstone

US

631

2017

Merlin Properties

Merlin Properties

Covivio

France

559

2017

Banco Popular Majority Share

Banco Popular

Blackstone

US

366

2017

Foreclosed Hotels

CaixaBank

Apollo Global RE

US

350

Some of the key findings are:

  • The average price per room in Spain reached EUR 155,000, with 59% of deals focused on holiday destinations.
  • Despite being down 18.7% on 2017, a record year for Spain, numbers are still exceeding those recorded for the previous decade, where only 2015 saw the EUR 2 billion mark breached.
  • Average investment across the Iberian Peninsula hit EUR 151,000 per room for assets worth an average of EUR 31.9 million, in other words, housing 211 bedrooms.
  • Institutional investors accounted for 68% of all deals.

Full report available for download below.

Publication
Full Report
Download
PDF 8 MB

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