Hotel investment in Spain reached €3.91 billion (US$4.77 billion) in 2017, up 79% on 2016 and overtaking the previous record set in 2015 of €2.61 billion (US$3.19 billion) set in 2015.
The resort segment accounted for 69% of recorded investment, according to Insights on the Hotel Investment Market in Spain 2017, an annual study by the hotels division of Irea, a Madrid-based corporate finance and strategic consultancy.
Last year’s investment total included both operating hotels and properties being converted to hotels: The country recorded a total of 182 hotel sales, or 28,813 rooms, compared with 147 hotels and 21,646 rooms in 2016. The average price per room was near €119,000 (US$145,400), 30% higher than 2016’s average price.
The hotel market is tracking tourism in Spain; last year, the country had 82 million international visitors, up almost 10% on 2016.
Malaga is rapidly becoming one of the top investor destinations, accounting for 15% of total investment. The Canary Islands took 27% of total volume. But Madrid remained tops, with €637 million (US$778.3 million) in investment.
Irea says that 2018 will continue to be a strong year for hotel investment in Spain but that “uncertainty in Catalonia will make it difficult to match 2017’s investment levels.”