HomeHotelCanary Islands or Balearic Islands? The islands dispute investment in hotels

Canary Islands or Balearic Islands? The islands dispute investment in hotels

Hotel investment in 2023 reached 4,248 million euros and the islands accumulated 46% of the total. In both the Canary Islands and the Balearic Islands, 39 hotel transactions were carried out, although the investment volume was not identical, according to the Colliers Hotel Investment Report. The entry of GIC into the shareholding of Hotel Investment Partners (HIP) was decisive in the result of the archipelagos.

Last year the average price per room increased by 8.4% compared to the record set in 2022, standing at 182,900 euros, driven by the sale of prime and quality assets. In the archipelagos the amount was even higher: in the Canary Islands the price was 191,959 euros/room and in the Balearic Islands it was 183,618 euros per room.

“The investment attractiveness of our archipelagos is undeniable,” he says. Laura HernandoManaging Director of Hotels at Colliers, detailing that “since 2016, the Spanish islands have accumulated 10,280 million euros in the purchase of more than 450 hotels (about 86,700 rooms), to which we must add as many billions deployed to reform and reposition these assets”

The Canary Islands, leader in hotel investment in 2023

The Canary Islands was the Spanish destination with the most hotel investment in 2023: 1,175 million euros, that is, 28% of the total. 39 operations were carried out in the archipelago, of which more than 20 are linked to HIP.

2023 was the second best year of investment, behind 2018 when 1,684 million euros were transacted. Between 2016 and 2023, more than 5.5 billion euros were invested in hotels

Hotel investment in the Canary Islands, evolution from 2016 to 2023. Source: Colliers.

As occurred at the national level, Portfolio operations were the protagonists in the Canary Islands (93%). In fact, only four individual assets were sold, including the Aldiana Fuerteventura hotel, acquired by DER Touristik, and the final award of the Las Águilas Hotel by Apollo, operated for more than a year by the operator ADH, also linked to the fund.

Among the portfolio operations, Colliers highlights the operation of GuideBridge about the Beatriz Hoteles portfolio, which included two hotels in Costa Teguise and Puerto del Carmen, both destinations in Lanzarote. Likewise, the Meliá and the Innide Fuerteventura, integrated into the joint venture between Banca March and Meliá, as well as the acquisition by Stoneweg ofl Be Live Experience La Niña.

More information

– Meliá and Banca March create a joint venture and buy three hotels

– Globalia closes the sale of two Be Live hotels

It is important to remember that in one year the investment went from 175 million euros to 1,175 million, for which the focus on 4 and 5 star establishments has been key, which accumulated a total volume of 1,064 million euros (75% and 15%, of the investment respectively).

Balearic Islands, protagonist but with less investment than in 2022

In the Balearic Islands, 39 hotel transactions were also carried out, for a total of 4,337 rooms, but the volume invested was lower: 796 million euros. The archipelago concentrated 19% of Spain’s investment.

The accumulated hotel investment in the Balearic Islands between 2016 and 2023 is 4,722 million euros. 2023 was the third best year, behind 2018 (947 million) and 2022 (913 million)

Canary Islands or Balearic Islands?  The islands dispute the investment

Hotel investment in the Balearic Islands between 2016 and 2023. Source: Colliers.

61% of the investment in 2023 corresponds to 4-star hotels and 32% to 5-star and luxury establishments.

As in the case of the Canary Islands, half of the operations in 2023 are linked to the HIP portfolio. The investment figure is influenced, in turn, by the purchase by the Abu Dhabi sovereign fund of 51% of Avenue Capital in the Calvia Beach Project in Magaluf, as published by HOSTELTUR in ADIA reaches an agreement with Meliá to buy 7 hotels in Mallorca

Other relevant operations in Mallorca were the acquisition, by Pontegadea (Amancio Ortega’s investment arm) of two boutique hotels in Palma for 35 million euros and the sale of the Be Live Collection Palace in Muro, which is part of the portfolio acquired by Stoneweg. .

At the individual asset level, Colliers highlights the purchase of the W Ibiza hotel by Gruppo Statuto; the sale of The Standard Ibiza to Schroders by KKH Property Investors or the purchase of Club Cala Marsal by the Majorcan chain Grupotel.

More information

– Amancio Ortega buys the two Nobis boutique hotels in Palma

– W Ibiza changes hands, bought by the Italian group Statuto

– Schroders Capital buys The Standard Hotel in Ibiza

– Grupotel buys the Hotel Club Cala Marsal, in Mallorca

Source: Hosteltur

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