The international hotel consultancy and advisory service, Christie + Co, has produced a report into key aspects of the recovery of the hotel market in 2015. This reveals that there have been more sales transactions in the Balearics than elsewhere in Spain.
Investment demand and improved profit ratios are motivating these sales and a resurgence of new hotel projects.
The report indicates that total hotel investment in Spain in 2014 was valued at 1,100 million euros, a 63% increase from the previous year. The final results for 2015 are expected to show another large rise to more than 1,600 million. A considerable number of transactions are at present being studied and are expected to be completed in the coming months.
The Balearics are proving to be attractive to both national and international investors, and the consultancy draws attention to examples such as the purchase by the German travel group Alltours of the Sumba and Borneo hotels in Cala Millor for 62 million euros. There is also the growing trend on behalf of hotel operators to divest assets and concentrate on their management.