Spanish firm Barceló has emerged as a potential buyer for its long-time rival the Madrid-based NH Hotel Group for $3 billion.
If approved, the combined portfolio would be 478 properties featuring roughly 89,000 rooms. NH Hotel operates close to 400 hotels, most of which are located in Latin America and Europe.
Experts say that an offer for NH Hotels makes sense, as the company has been going through a tumultuous period marked by regular in-fighting among its shareholders in recent years. In 2013, Chinese conglomerate HNA group bought a share of the company, but so far its involvement has been largely resisted.
Over the past year, the NH chief executive and several of its board members who were close to HNA were ultimately ousted as part of the Chinese company making a bid for Carlson Hotels, which was then viewed as a potential conflict of interest given that Carlson holds a stake in the Rezidor Hotel Group.
Spain has recorded a record 36 million foreign visitors in a six-month period, which represents a rise of more than 11 percent over the same period at this time last year. This is also the fourth consecutive year during which Spain has seen an increase of tourists coming across its borders.
Experts say that Spain is becoming the beneficiary of ongoing security concerns in previously competitive Mediterranean holiday locales such as Egypt, Tunisia and Turkey, which have motivated millions of travelers to instead take their business to Spain.
According to UNWTO’s 2017 report, Spain ranks as the world’s second largest earner with $60 billion, and the third largest destination in terms of arrivals with 76 million, virtually equaling the United States, which continues to top the international tourism receipts ranking, with $206 billion earned in 2016.
European hotel investment transaction volumes totaled €9 billion ($11 billion) in the first half of 2017 representing an increase of 6 percent year-on-year, according to the latest data from global commercial property adviser CBRE.
Spain has experienced an exceptional increase in hotel investment transaction levels, which soared by 228 percent year-on-year and reached more than €2 billion ($2.3 billion) for first half 2017, compared to the same period in the previous year. The strong market performance has been largely driven by Spain’s economic recovery, attractive asset pricing and availability.
