Hotel chains look to Palma

PALMA
HOTEL chains looking to expand in Palma are having difficulties finding adequate premises in the historic part of the city.
The growth of the city break fuelled by the increasing number of flights by low-cost airlines across Europe is leading hotel chains to look at opportunities in Palma.

Not only has the city much to offer tourists by way of cultural and gastronomic attractions, it is well served by direct flights from across Europe, especially the UK and Germany.

International consultants CB Richard Ellis (CBRE) say they have been contacted eight times in the last six months with requests for information about adequate premises for urban hotels in Palma.

The problem is that hotels wish to locate in the old part of Palma and supply is not matching demand.
According to CBRE, “nowadays it's very complicated to find a whole building on sale that has sufficient space for at least 40 rooms”.
Most hotel chains won't consider buildings that can't house at least 40 rooms and make this a basic condition of any search for premises in the city.
CBRE, who specialise in finding premises for companies across the world, believe that there is a growing demand for premises in Palma, but “very little supply” to satisfy it. Property that is available is characterised by high prices. CBRE believe there is space for chains that are willing to open smaller hotels of about 20 rooms. The consultants say that there are now smaller chains seeking to open hotels in Spanish cities outside of Madrid and Barcelona. The basic condition for them is that the cities are well served by flights, such as is the case with Palma.