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CHEQUE IN Hotel Investments Soar In Canaries

Tuesday February 13, 2018

CHEQUE IN Hotel Investments Soar In Canaries

The tourism boom in the Canaries is attracting record levels of interest from hotel investors, as the islands accounted for over 900 million euros of incoming funds last year.

Spain’s tourist industry grew by just over 10% last year. Attracting 82 million foreign visitors and establishing the country as the second most popular holiday destination in the world, displacing the United States in the process.

And despite the growing popularity of private holiday rentals, said to account for around 10% of all tourist accommodation in the Canaries, the vast majority of visitors still book a stay in a hotel. A fact that has not gone unnoticed by savvy operators in the leisure sector, who helped create a record year for transactions in 2017 as total hotel investment soared to an all time high of 3907 million euros, beating the previous best of 2614 million euros in 2015.

The Canary Islands attracted more investment than any other region of Spain last year, accounting for 27% of all hotel sales, with a combined value of 939 million euros. And here on Lanzarote there are now numerous new and pending projects in the pipeline in all of the island’s main holiday resorts.

Spanish resort hotels in particular have become hot property over the last few years, with investment in this sub sector greatly outperforming urban properties, by a ratio of around 70% to 30%. Thanks to growing interest from large, international institutional investors such as Blackstone, who snapped up Spanish hospitality company Hotel Investment Partners and their portfolio of 14 hotels at the tail end of last year.

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