SPAIN HOSPITALITY SECTOR ON INVESTORS’ SIGHTS

SPAIN HOSPITALITY SECTOR ON INVESTORS' SIGHT

SPAIN HOSPITALITY SECTOR ON INVESTORS’ SIGHT

The upsurge in Spanish tourism is having a positive knock-on effect on other sub-sectors of the hospitality industry, particularly hotels.

And this improved outlook for Spanish hotel properties is fuelling interest from a variety of foreign investors looking to secure attractive returns.

The European hospitality sector has long been on the radar for Middle Eastern investors seeking to diversify their portfolios.

Earlier this year, representatives from the Qatari Businessmen Association said the country’s private sector is eager to tap opportunities in Europe’s hospitality industry.

Could Spanish hotel assets be on Qatari entrepreneurs’ buy list?

Qatar is no stranger to Spain, with government-backed investments already chalked up in the country’s sports tourism industry and the energy sector.

 

SPAIN HOTEL PROPERTIES ATTRACT INVESTORS

While the country’s real estate market remains largely in the doldrums, hotel properties are doing better at retaining their value.

Interest for prime located properties in Spain is still high. Opportunistic overseas buyers are focusing on the two main cities of Madrid and Barcelona, waiting to pounce on distressed opportunities offering high-performing assets at affordable prices.

For the moment, Barcelona’s hotel industry is looking stronger due to the growing popularity of the city with international tourists.

It has been positioned for some time as one of the main European tourist destinations within the events and conventions segment, as well as the cruise market.

Madrid has traditionally been a business destination due to the presence of major domestic and international companies.

But over the past few years, there has been a major effort to promote Spain’s majestic capital city as a leisure hub.

The hotel supply is being refurbished and the city is attracting international luxury brands which will increase average hotel prices and appeal to tourists with a greater purchasing power.

 

NORTH AMERICAN INVESTORS BACK MADRID

Madrid’s hotel sector was recently given a huge boost by the agreement between Spanish builder OHL and Four Seasons to build a new 5-star hotel complex in the heart of the city.

The Canadian hotel group’s 215-room debut in Spain will be housed in the series of heritage buildings comprising the Canalejas complex, adjacent to the emblematic Puerta del Sol.

But North American interest in Spain doesn’t end there….

Earlier this year, US leisure conglomerate Las Vegas Sands chose Madrid satellite town Alcorcon as the location for its Eurovegas casino city. The total investment in the project is estimated at around 18 billion euros.

For information on investment opportunities in Spain’s hospitality sector, contact Argali Abogados.

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