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Investors show more and more interest in secondary markets
Hotel assets continue to grow. Thus shows the analysis of the average value per room of 152.000 euro in last year’s purchase operations, based on the report Marketbeat Hospitality by Cushman & Wakefield.
According to the report, prepared through a survey of 100 hotel chains present in Spain, because of the rise of prices in prime areas such as Madrid and Barcelona, investors are more and more looking at secondary destinations, both urban and touristic areas.
16% more operations € 120.000-150.000
The number of operations of purchase of hotel assets between € 120.000 and € 150.000 per room rose by 16% last year, from 29% of the total number of operations in 2017, to 45% last year. The operations between € 60.000 and € 120.000 per room on the other hand decreased from 43% to 33%. This is a clear signal of the continuous growth of prices within the sector.
18% of all operations involved prices above € 150.000 per room, 5% less than in 2017, and the transactions under € 60.000 covered 6%, 1% less than the year before.
No more new hotels in Barcelona centre
The rising prices in Barcelona has an additional explication: the new hotel regulation in the city. Since it’s impossible to open a new hotel in the city centre, the actual prices go up. And the transformation of offices into hotels, fashion boutiques and other are becoming less interesting, because of the same regulation.
New destinations
The rise of prices makes investors look at new destinations such as Zaragoza, Cádiz, Córdoba and Granada, or regions such as Costa Blanca (Alicante) and Costa Trópical (Granada). These are areas that may produce higher profits, which becomes harder very time in for example Barcelona.
The report also states that the large-scale operations of complete hotel assets in the last years, for example by Blackstone or Atom, will not be repeated this year, because investor are more busy organizing their portfolio and selling non-core assets.
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