Investments in hotels on the Costa del Sol will rocket to 355 million euros during 2022

The Costa del Sol and Malaga city continue to be a safe haven for hotel investors. Neither the impact of the pandemic, which has unleashed the greatest crisis in the history of tourism, nor the current uncertainty, which continues to weigh down recovery forecasts, have taken their toll on a destination that remains a safe bet.

Data from Colliers, a leading global real estate investment advisory and management services company operating in 65 countries, indicates that the province of Malaga has positioned itself in recent years as one of the main sites for hotel investment and property development, including the building of new hotels, in Spain. In 2022, Colliers expects investments in hotels in the area to reach 355 million euros.

Laura Hernando, general manager at Colliers, said that 29 hotel projects on the Costa del Sol are expected to be completed in the next year, adding more than 3,300 rooms.

“Several important projects should be highlighted, such as the comprehensive reform of the La Zambra, the old and emblematic Byblos, after its acquisition by Intriva Capital in a process advised by Colliers. Also, the comprehensive reform of the old Don Miguel hotel in Marbella, by Magna and Club Med, as well as the remodelling of the Doña Julia de Casares establishment, which will mean the entry of the Hilton chain on the Costa del Sol with its Conrad brand, or the reconversion of the Palacio de la Tinta in Malaga, acquired at the end of 2019 by Hotusa in a public auction,” she said.

Throughout Spain, Colliers forecasts that investments in hotels will reach 2.85 billion in 2022.

“That figure, which is much higher compared to other years, includes both the investment originally planned for this year and the backlog of investments created over the past two years,” Hernando said.