During the first half of the year, four deals worth a total of 110 million euros were recorded in Malaga province. The Costa del Sol is among the top three destinations in Spain that is attracting the biggest spenders around the world who are looking to invest in holiday hotels.
During the first six months of this year, investors have poured money into establishments in the Balearic Islands and the Canary Islands, followed by the Costa del Sol with four transactions in the province of Malaga valued at 110 million euros, according to the report on Hotel Investment in Spain prepared by the hotel sector team at property specialist Colliers. However, business deals on the Costa del Sol are not as numerous as those recorded during the same period last year they detailed.
The main sun and beach destinations such as the Balearic Islands, the Canary Islands and the Costa del Sol account for 49% of the investment in Spain with a total value of 684 million euros. Colliers pointed out that the Balearic Islands is the undisputed leader with fifteen deals, with more than 2,000 rooms and valued at 400 million euros. Meanwhile, the Canary Islands recorded seven transactions worth 174 million.
The desire for luxury is dominating hotel investment, the report pointed out. The five-star and Grand Luxury categories registered investments of 717 million euros, accounting for more than half of total investment. This category is led Barcelona after two transactions on prime assets. “Investors have made a strong commitment to quality assets and have focused on luxury, which has proven to be highly liquid and resilient in times of uncertainty,” the report said.
Foreign buyers accounted for 63% of the total spend in the first half of the year, continuing the trend of recent years, the report also showed.
Source: SUR in English, July, 2023.