Everything indicates that the hotel sector is in a process of growth and post-pandemic recovery. This increase in hotel investment is proportional to the increase in tourism in our country. The greater the number of tourists, the higher the occupancy will be. In other words, the greater the demand, the greater the need to increase the hotel supply in order to balance the market.
Everything indicates that the hotel sector is in a process of growth and post-pandemic recovery, as reported by the newspaper La Vanguardia on May 21st, 2022. Hotel investment registered in Barcelona in the first 5 months of this year has reached 200 million euros, 90% of the amount invested in the same period last year. This increase in hotel investments is proportional to the increase in tourism in our country.
The higher the number of tourists, the higher the occupancy rate. In other words, the greater the demand, the greater the need to increase hotel supply in order to balance the market.
Impact of the hotel moratorium, a heavy burden for the sector in Barcelona:
The growth of hotel supply could be even better in Barcelona, as the hotel moratorium approved by the municipal government of Ada Colau in 2015 has had two impacts so far: reduced hotel capacity, increased prices for hotel stays without control, and increased supply of tourist licensed flats.
With this regulation, the government only allows the opening of new hotels in secondary or adjacent areas of Barcelona, where Resort Hotels or Serviced Apartments fit perfectly, and are the most attractive and interesting accommodation types for European investors, according to the Hotel Investor Beat report prepared by Cushman & Wakefield in mid-2021.
Expectations for the recovery of tourist activity:
The same Hotel Investor Beat report reveals that respondents believe that the recovery in the hotel sector will be gradual, with leisure destinations recovering first. 85% of those surveyed believe that by 2023, the 2019 level will be recovered in the leisure field.
On the other hand, it is expected that the main cities will not recover that level until 2023 or 2024, according to 75% of respondents. In any case, the expected recovery rate is better than after the global financial crisis, when the hotel RevPAR (revenue per available room) took 5 and a half years to reach pre-crisis levels.
Finally, the survey also reveals that ESG criteria (environmental, social, and governance) are increasingly important during the acquisition process. 30% of respondents give critical value to this aspect. Therefore, this criterion favors Barcelona again. This is corroborated by Cushman & Wakefield, who conclude that the increase in investments is not only due to the market recovery after the pandemic but also to the high price of hotels in Barcelona due to the lack of properties (hotel supply).
The results of the report demonstrate that Barcelona and Madrid offer attractive conditions for hotel investments for different reasons, as the report places Barcelona in the number one position in the ranking of cities of greatest interest for hotel investment, followed by Madrid in the seventh position.
We are in the midst of the hotel sector's growth and recovery process, and Barcelona offers a variety of suitable areas and subareas for each hotel typology. At Kamvy Property Advisers, we offer and advise you throughout the search and acquisition process for your next hotel investment.
You can access the incredible hotel investment opportunities we offer at the following link. If you need additional information, don't hesitate to fill out our form, and an advisor will be happy to contact you for more information!