Investment in hotels is on the increase. / sur

Hotel investment in Malaga province doubled in the first half of this year

Five destinations, of which the Costa del Sol is one, accounted for 86 per cent of the transactions in Spain, with a value of 1.5 billion euro

Pilar Martínez

Hotel investment is not only increasing on the Costa del Sol but actually doubled in the first half of this year, compared with the same period in 2021. Coastal resorts and Malaga city are attracting a great deal of interest from major investment funds, hotel groups and those looking for opportunities after two years of the pandemic.

A report on hotel investment from Colliers, a leading real estate advisory and management company, shows that Malaga province accounts for 13% of hotel investment in Spain, when in the period until June last year it was only 9%. It means that in this regard Malaga has overtaken the Canary Islands, which now represent 10% of hotel investment in the country, and is catching up with Barcelona, at 15%.

A change in trend

Colliers also revealed that up until June, the five prime destinations – which are Madrid, Barcelona, the Balearics, Costa del Sol and Canary Islands - had accumulated 1.3 billion euros of hotel investment, which was 86% of the total. Laura Hernando, the managing director for hotels at Colliers, said the pandemic provided opportunities to buy hotels which would normally never have been sold. In total, between the purchase of existing hotels, buildings to convert into hotels and land to construct hotels, there were 68 transactions in Spain in the first half of this year, totalling 9,707 rooms.

Hernando also highlighted the prevalence of the urban segment during these six months, which accounted for 57.4% of the total investment, rather than the holiday resorts for the first time. The reason is the attraction of cities like Malaga, Madrid and Barclona: 873 million euros were invested in hotels in the main tourist cities, compared with 648 million in resorts.

She also added that the figures show that the hotel investment market has fully recovered from the pandemic and they indicate that Madrid is considered the top destination in Spain, followed by Malaga and Barcelona.