Hotel investment rebounded strongly in 2021

It reached 3.18 billion euros, its third highest figure ever in Spain

Foreign investors in the hotel sector came back to Spain on a buying spree in 2021. The figures speak for themselves: not only was there a recovery from 2020, when the Covid-19 pandemic brought the market to a screeching halt, but buyers stepped on the accelerator to reach the third highest figure ever recorded in our country.

In total, hotel investment reached 3.18 billion euros in Spain in 2021. This figure, which includes hotels in operation, properties with hotel conversions planned and land for hotel use, is three times the previous year's figure, according to the Colliers hotel investment report. While 68 hotels (7,228 rooms) changed hands in 2020, 127 establishments (19,043 rooms) changed ownership last year, in addition to 18 assets including properties for conversion and land.

Revival of the sector
The gradual revival of the sector is seen in the market trend. 65% of the total investment therefore took place in the second half of the year. According to the authors of the study, this curve suggests that growth will continue in the first half of 2022, with 1.5 billion euros in assets for sale.

The origin of the investments was predominantly international. Specifically, foreign funds disbursed 1.848 billion euros in their purchases, accounting for 58% of total investment in the sector in 2021. These include core and value-added funds such as Brookfield, Archer Capital, Schroders, Castlelake and Lasalle Investments.

Price per room
Another significant figure was the price per room paid by buyers in 2021, which was at an all-time high. The average price was 157,648 euros, whilst at two establishments the figure exceeded one million euros per stay. This was at two hotels in Madrid, the Edition and the Bless. Figures at other locations exceeded half a million, such as the Grand Hotel Central in Barcelona, Punta Negra in Mallorca and the Hotel Único in Madrid.

2021 saw the third largest amount of hotel purchases and sales ever recorded in Spain. Only in 2017 and 2018 have investment figures in excess of 3 billion euros been recorded. The holiday and urban hotel sectors shared this appetite for investment 50/50, rectifying a balance traditionally skewed towards holiday destinations.

Major transactions
Barcelona and Madrid accounted for 38% of investment in urban destinations. In Barcelona, major operations included the sale of the Selenta Group to Brookfield, the acquisition of the NH Collection Gran Calderón by Lasalle Investment and purchase of the Grand Hotel Central and the former Tryp Apolo by Schroders. In the capital, significant purchases included the Edition hotel by Archer and the Bless hotel by RLH.

The Canary and Balearic Islands attracted 37% of investment in holiday destinations. Individual transactions included the sale of H10 Punta Negra to Blasson Property, which will convert it into an ultra-luxury hotel., Riu and Grupotel were the main players in portfolio sales. 

Perial opens 2022 with 58.4 million euros
The market does not pause to take stock. The French group Perial Asset Management has closed 2021 and opened 2022 with a two-stage transaction. It will purchase a portfolio of nine Spanish hotels managed by B&B Hotels, for which it will pay a total of 58.4 million euros. The first stage was signed on 17 December with the acquisition of five hotels for 25 million euros. The second stage, scheduled for May, will add four establishments to the shopping basket for a further 33.4 million euros.

Photo: Perial Asset Management