Hotel business in Spain (bars, restaurants, hotels)

2015: Investments into the hotel sector grew by 124% to 2.6 billion euros

In 2015 in Spain the historical record by the amount of investments into the hotel sector of the country - 2 billion 650 million euros is broken. Growth in comparison with an indicator of 2014 was 124%. The corresponding digits are given by JLL Hotels & Hospitality Group company.

The previous record was set to a sharp phase of an economic crisis – in 2006. Then investments into hotels of Spain made 1.6 billion euros^[1].

Now Spain came to the third place in Europe on investments into the hotel sector – after Great Britain and Germany.

"It is expected that in 2016 this trend will remain", - the head of JLL Hotels & Hospitality Group in Spain and Portugal Luís Arsuaga said.

The region, most popular with investors, were the Canary Islands of which it was the share post 30% of all investments. Madrid, and on the third – Balearic Islands was at the second place. Barcelona takes only the fourth place in this rating.

2014: Investments into the hotel sector of 1 billion euros (+37%)

2014 became for the hotel sector of Spain successful in terms of investments. According to the report of the consulting agency Irea, the volume of investments in this segment grew by 37 annual average % – to 1.081 billion euros. It is the third of the most large-scale indicators for the last 20 years. Foreign investors and hotel chains were the main buyers of hotels, however investment societies (Socimi) also occupied the niche. As sellers hotel chains most often acted.

The prevalence of investments in a resort segment – both in terms of number of transactions, and in terms of the volume of investments became distinctive feature of 2014. So, transactions of purchase and sale of four-star hotels Guadalmina in Marbella and Meliá Jardines del Teide on the island of Tenerife with Socimi Hispania participation are especially selected here. In total in 2014 27 transactions in the resort sector for the total amount of 491 million euros were made that is 59% more, than in 2013. In the cities of Spain 23 transactions for the amount of 347 million euros (+41%) were made.

Balearic Islands where the volume of investments grew by 22% and also Madrid (20%), Barcelona (18%), the Canary Islands (16%) and coast of Costa del Sol (6.5%) were the most demanded directions among investors. However, against the background of it the investment volume into the secondary directions where in the years of crisis the low level of activity was observed grew. As for the most active investors in the field of purchase of hotels, a specific place is held here by funds Egyptian vultures which activity is focused in the real estate market and hotel business. On the stage Asian investors also appeared. Above-mentioned societies Socimi made five transactions, and Hispania was the most active of them.

Sales were most often made by hotel chains to which share 39% of the withdrawn capital fell. In 2014 NH and Meliá companies continued a deinvestirovaniye for the purpose of reduction of volume of real estate assets and creation of financial resources.

In addition, It should be noted also significant growth in operations on sale of the described property – for 126% in comparison with 2013. In certain cases similar transactions originated even in the years of crisis, however by a logical conclusion came only in the 2014th as, for example, in a case with Hotasa and Foxá hotels.

For 2014 purchase and sale of separate hotels, than big portfolios was more characteristic – 87% of the total number of transactions fell to their share. In the second category, in turn, the following transactions became the most noticeable:

• purchase of NH Almenara and NH Sotogrande hotels in Sotogrande's (Andalusia) urbanization Cerberus and Orion funds;
• purchase of two hotels by society Hispania in Madrid – NH Pacifico and NH San Sebastián de los Reyes;
• purchase of 18 European hotels including located in Spain Holiday Inn Express Valencia San Luis and Holiday Inn Express Alicante made by Apollo Management International investment group;
• acquisition of the Madrid hotel Intercontinental by Qatar holding Katara Hospitality along with five other European hotels^[2].

2012

In general in 2012 in this sector 1,322,200 people worked. From them 1,060,600 worked in restaurant business, and 315,600 more – in the hotel sphere.

The number of bars was reduced by 50 thousand

During the period from 2008 to 2012 in Spain stopped work of 50 thousand bars.

It is confirmed by data of the Spanish federation of hotel economy (FEHR). Production volume in this sector was reduced by 13%. As representatives of FEHR in the annual report, "explained reduction of sales volumes, falling of the prices and increase in taxes and expenses led to closing of many institutions which often were family". In 95% from them less than 10 people work, and in 45% of employees is not present at all – business is run by exclusively individual entrepreneurs^[3].

"Bars – the most numerous group of institutions in the sector of hotel economy therefore in it there are problems connected with the excess supply", - representatives of FEHR explain.

In 2012 in Spain there were 197,391 bars. The total turnover reached 51.363 billion euros (43% of a total turnover of hotel economy). In pre-crisis years, since 2000 on 2008, turnover grew by 47.5%.

Restaurants

Restaurants were the second largest group – them in the country there are 73,023. "About their 2008 it became approximately 3,000 more. 43% of production of the sector of hotel economy fall to the share of restaurants, and in 2012 the extent of turnover reached 40.435 billion euros – 4.1% less, than in the 2008th", - representatives of FEHR tell.

Hotels

14% of production of hotel economy fall to the share of hotels in Spain. In 2012 the number of hotels in Spain made 16,981, and the extent of their turnover reached 17.11 billion euros. With 2008 in the country a little more than 500 new hotels appeared.

See Also

• Economy of Spain
• Spain

Notes