Business

Almost twenty per cent of hotel investment is in the Balearics

There are two types of hotel investment - real estate and redevelopment. | Miquel À. Cañellas

Majorca Daily Bulletin reporterPalma21/12/2017 00:00

Business brokerage and consultancy firm Christie & Co. reports that up to November there was investment in the Spanish hotel sector of just over 3,000 million euros, of which the Balearics accounted for 18%.

Just under half of this investment was Spanish. The United States provided 29% and the UK ten per cent. Investment firms were to the fore, as they were responsible for 50%. Hotel companies themselves took care of 21.7%.

Blackstone has been the biggest investor this year. Two major investments amounted to 630 million euros. The hotel group Riu lies second because of the 272 million euros for the Edificio España in Madrid.

Over half the investment (58%) has been going to sun and beach holiday destinations. While the Balearics have registered 18%, the highest (23%) has been for the Canaries. Some way behind is the Costa del Sol with five per cent. The other 42% for city destinations has been led with 19% investment in Madrid.

Overall, 90% of investment has been in six regions - Andalusia, the Balearics, the Canaries, Catalonia, Madrid and Valencia. These regions account for 88% of foreign tourists.

Hotel investment in Spain has risen sharply in the past three years. In 2015 it was just over 1,000 million euros.