Spanish Hotel Investment Market Reaches €724M in H1 2014

Half Year Activity Exceeds Investment Total for 2013 - €665m

70% of Activity Carried Out by domestic hotel chains and Investors

Domestic Demand For Hotel Rooms Has Increased for First Time Since Economic Crisis
Madrid, 8 August 2014 – Spain's hotel sector recorded investments of €724 million between January and June this year, according to data from global real estate advisor, CBRE. Investments in the year to date have already exceeded those in the entirety of 2013, which saw €665 million of transactions.
Positive underlying tourism data has been driving interest in the market, with 124.5 million overnight stays recorded in Spain in the first half of the year. In particular, the Madrid market, which is more dependent on business tourism, saw a 12.5% increase in overnight stays, while Barcelona also experienced a 6.6% rise over the same period.
Foreign tourism continues to grow, with rises in visitor numbers from Portugal, Finland and Poland the greatest so far in 2014. Sun and beach destinations (Castellón, Valencia and Costa Tropical) remain the most popular, but inland destinations such as Toledo are also benefiting from this trend.
Importantly, domestic demand for hotel rooms increased 3% in H1 2014, the first time positive data has been recorded since the onset of the financial crisis.
In a broader signal of the domestic recovery, national brands and investors accounted for 70% of all hotel transaction in the first half of the year, most notably SOCIMIs, listed Spanish real estate companies.
Jorge Ruiz, Director of CBRE Hotels, Spain, commented:
“Investment in resort hotels represents half of the transactions so far this year, surpassing figures for 2013. Urban transactions have constituted the majority of the remainder, although we are seeing some interest from buyers in hotels in secondary urban areas.
“Domestic investors, particularly SOCIMIs, have been especially active in Spain’s hotel market so far in 2014, as demonstrated by the acquisition of the Hotel Guadalmina as well as two other hotels in Madrid leased to Spanish hotel chain NH by Hispania.”

About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue).  The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at