A report by real estate services company Colliers International states that over the three years 2015 to 2017 there was more investment in hotel redevelopment (and some new building) in the Balearics than anywhere else in Spain. This totalled 1,121 million euros, 36% of all investment in the country.
In the Canaries there were 625 million, and in Barcelona 318 million. The report notes that the Balearics, the Canaries and Barcelona all have restrictions that inhibit the building of new hotels, which means that most investment is for modernising what already exists. Nationwide, the investment over the three years was 3,137 million euros.
Over 70% of this investment - 2,250 million euros - was for hotels in holiday areas. The report says that this shows that hoteliers were making strategic decisions to invest profits in improving their establishments and therefore in enhancing customer loyalty. This has allowed them to face the challenge from destinations in the Mediterranean which are now recovering after a period when their tourism slumped.
Colliers believe that in the short to medium terms there will be further investment as hotel chains look to reposition themselves in the market. This will allow them to capture the demand for Spain as a preferred destination because of the country's security, infrastructure, health system and general services.
