Investment funds accounted for more than half of hotel purchases in the first half of the year

According to data from the consulting firm CBRE, the hotel sector made 1,390 million euros in investments in the first half of the year, which concentrates 27% of the total expenditure registered in the real estate market in 44 operations. 52% of these investments were monopolized by mutual funds.

In the second quarter of the year, investments in hotels reached 879 million euros, leading real estate investments with 41% of total investments.

Forecasts for the coming months acc CBRE They project the number of travelers occupying hotel beds will increase by 6.9% in 2023 compared to 2022 to nearly 110 million travellers, 1% above pre-pandemic peaks.

Looking ahead to 2024 and 2025, CBRE expects this positive trend to continue, albeit more moderately, with increases of 1.4% per year and the average stay per person to increase to 3.2 instead of 3.2 nights in 2019 will weaken.

In the first half of the year, 55 hotel properties and 6,978 rooms were processed, compared with 77 hotels and 9,384 rooms in the first half of 2022, a decrease of almost 30% and 25%, respectively.

Mutual funds, the kings of hotel investments

Mutual funds were again the dominant investment profile, accounting for 52% of total investments, followed by private funds, which accounted for 31% of investments.

Luxury hotels accounted for the majority of investments, split into 31% in 5-star hotels with 30% and two luxury hotels that accounted for 21% of the total volume, followed by four-star hotels with 37% of the total transaction volume (25 hotels) and 8% of them with 3 stars (10 hotels).

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By asset type, H1 investment in holiday hotels again outperformed the urban segment with 53% of the total, with Barcelona accounting for 33% of the volume, followed by the Balearic Islands at 31%, Madrid at 11% and Malaga at 8%.

In terms of new openings, the Balearic Islands and Madrid were the ones that achieved the most new openings, with 15% and 13% respectively; and around 290 new hotels with about 31,000 rooms are expected to open by 2024, 23% of which will be high-end hotels.

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