Meliá Hotels & Resorts opened Meliá Durrës in Albania in 2023 .
control and borrowers can project and predict their cost of debt ,” Hatton said . “ They have the confidence to go ahead and borrow and do a deal .”
He added there are also now non-traditional hotel investors that feel a bit more comfortable dabbling in the space . “ Investors like the number of power levers for value creation they have : operational improvements ,
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brand repositioning and ROI CapEx projects if they want a little more yield ,” he said .
WHO ’ S ON TOP ? Regionally , Spain is now the top destination for hotel investment , according to the report , besting the U . K . It ’ s not all gloom in England : London remains the top city for investment , followed by Madrid
Meliá ’ s Zel Costa Brava in Spain .
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and Paris .
In 2023 , Spain was the second-most visited country in the world behind France with 85 million tourists , according to the National Statistics Institute . Some investors seek partnerships with established brands like Spain ’ s Meliá Hotels International , which has an extensive global portfolio of differentiated brands , while others opt for rapidly growing brands like Leonardo Hotels whose owner , the Israelifounded Fattal Hotel Group , has acquired 40 European hotels in the last 24 months , including a fourth in Madrid slated to open in 2026 .
“ Spain offers a favorable investment climate ,” said Gabriel Escarrer Jaume , CEO and chairman of Meliá Hotels International . “ Madrid ’ s regional government is rolling out initiatives to boost tourism and hospitality , like improving infrastructure and international music events . Property prices
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in Madrid are relatively lower than other European capitals , and the returns are quite attractive . This kind of backing makes it a great environment for investors .”
His global development VP , María Zarraluqui , said that one of the larger trends for developers in Spain and across Europe is the repositioning of assets . “ Not just with thirdparty hotels ,” she said . “ We also form joint ventures with the market ’ s biggest players to realign our own properties . Our ‘ asset-right strategy ’ repositions our brands to achieve higher yields and upgrades our portfolio .”
It ’ s simple math as to why hotel investment in Spain , Madrid specifically , has become so attractive , according to Jon Critchley , director of HVS Hodges Ward Elliott . “ Madrid is double the size of Barcelona ,
SPAIN OFFERS A FAVORABLE INVESTMENT CLIMATE
– GABRIEL ESCARRER JAUME ,
CEO AND CHAIRMAN , MELIÁ
HOTELS INTERNATIONAL
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September 2024 hotelsmag . com 41 |