Hotel investment in Spain in 2019 reached €2.4b, led by the urban sector

The total hotel investment figure in Spain in 2019 was €2.4 billion ($2.6 billion), almost half of the investment volume of 2018, with a total of 114 transacted assets (compared with the 223 registered in 2018), according to Christie & Co.

Despite the decrease in investment volume, the average price per transacted room increased again in 2019, reaching €142,000/$154,000 (vs. €128,000/$139,000 in 2018), as a result of the high liquidity available in the market, the strong investment demand, the positive evolution of the main hotel KPIs and the continued compression of the yields.

The resort sector was the most affected, registering a total investment volume of 41 percent, a significant change from the previous year (64 percent). The main reasons for the decrease were: the recovery of the sector in the north of Africa and other Mediterranean countries, the evolution of Brexit, Thomas Cook’s bankruptcy, the crisis of some airlines, and the absence of large por