After a year of drought in the hotel investment market in Barcelona, the city is experiencing a resurgence in investor interest. International funds have returned in search of opportunities, and so far this year, deals worth more than 500 million euros have been closed.
This wave of investment has propelled Barcelona to regain its leadership position, leaving behind Madrid, which experienced a boom in luxury hotel openings. Join us as we explore the renaissance of hotel investment in Barcelona and the reasons behind this impressive change of scenery.
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The Year of Drought:
Last year, Barcelona’s hotels experienced an investment drought. Investment in accommodations in the Catalan capital plummeted to just €229 million, marking a sharp contrast with the all-time high reached in 2021, which amounted to €721 million. This decline was due, in part, to the moratorium imposed by Ada Colau, which discouraged investment in the tourism sector. As a result, Barcelona lost its national leadership and was overtaken by destinations such as Madrid and the Balearic Islands, which experienced a higher number of luxury hotel openings. However, large investment funds continued to watch the city, waiting for opportunities that have finally begun to emerge.
A Triumphant Return:
The year 2023 has brought an impressive turnaround for Barcelona. Hotel investments have rebounded remarkably, exceeding expectations. Laura Hernando, director of Colliers Hotels in Spain, reports that deals with an estimated value of more than 500 million euros have been closed so far this year. This figure is significantly higher than total investments in 2022. As a result, Barcelona once again led the market, surpassing Madrid.
Interest on Several Fronts:
Interest on Several Fronts:Investor interest is not limited to traditional hotels in Barcelona. Bruno Hallé, partner and co-head of Hospitality at Cushman & Wakefield in Spain, notes that there is widespread interest in the city. This interest ranges from hotel accommodations to tourist licenses, coliving residential projects and hostels. The market is booming, which has led to the arrival of large-scale operations in the city.
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A Change of Ownership:
The change of ownership of iconic luxury hotels has been a prominent theme in this resurgence. The Mandarin hotel, for example, was sold for around 220 million euros, a deal that surprised many. In addition, Meridia acquired the Gallery, valued at approximately €50 million, and the Sofia hotel has also changed management, with investment plans to transform it into the Grand Hyatt Barcelona. But, perhaps the most anticipated change is the sale of the W Barcelona, known as the “Vela hotel.” Qatar’s sovereign wealth fund is looking for a buyer willing to pay 265 million euros, which could set a new record for hotel investment in Barcelona.
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The resurgence of hotel investment in Barcelona has generated enthusiasm in the market and revived the city’s competitiveness compared to other European capitals. With notable operations and growing interest from international investors, Barcelona is uniquely positioned to thrive in the tourism sector in the years to come.
As the final quarter of the year looms, the hotel investment market in the city promises more exciting moves and opportunities for investors and hotel owners alike.
Barcelona, once again, consolidates itself as an attractive destination for the hotel investment world.
