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Outlook for the hotel sector in 2015


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Integral service around a transaction
BY : Diego GutiérrezFebruary Thu, 2015
The tourism GDP closed 2014 with a growth of 2.9% compared to the previous year. Moreover, in 2014 hotel investment exceeded 1,000 million, the third best figure in 20 years..

Active investors in 2014

In 2014, new investors have joined the hotel sector, such as investment funds specialised in the hotel and real estate sector, Socimis and new foreign investors.

 Asian investors such as the Chinese group Jiangsu GPROthe investment fund Platinum Estates (based in Hong Kong) or Frasers Hospitality of Singapore carried out their first operations in Spain. In addition, Middle Eastern sovereign wealth funds invested again in Spain, acquiring the hotels Renaissance of Barcelona and Intercontinental of Madrid.

  National hotel groups accounted for a large part of the purchase volume, 244 million in a total of 13 transactions.

 

What is being invested in?

 The holiday segment led investment in 2014 in terms of both number of transactions and volume. Premium assets (5-star and 5-star luxury) lost importance in 2014, accounting for 34% of the value compared to 60% in 2013. The three- and four-star segments increased their relative weight to 62.3% of the total investment volume.

Divestments in 2015

The entry of new potential buyers into the market such as new socimis, international investors, national family offices and hotel chains The hotel owners who want to carry out divestments that they have not been able to make in times of crisis will see this as a great opportunity.

Closing of investment operations in hotel portfolios

It is likely that deals that were at an advanced stage of negotiation at the end of last year but have not been finalised will be closed, such as the sale of a group of six to eight holiday hotels at Meliá Hotels International a Starwood Capital. A significant portfolio of 16 holiday hotels (approx. 6,000 rooms) from Barceló Hotels & Resorts.

Other posts that may interest you

M&A analysis of the tourism sector in Spain

Strong growth of technologies in the tourism sector.

 

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