EUROPE REPORT
Legend Country level-performance ranking
Ireland |
UK |
8 2
Netherlands
|
6 |
9 |
Germany |
THERE ’ S A LOT OF HEAT BUYING ASSETS IN PRIME LOCATIONS . LOCAL LENDERS ARE CURRENTLY VERY KEEN ON HOTELS , WHICH HELPS REGENERATE THE REGIONAL ECONOMY
– JON CRITCHLEY , DIRECTOR OF HVS HODGES WARD ELLIOTT , SPEAKING ON SPAIN
but the number of hotel beds is half , with the lion ’ s share still domestically owned , and a value-add opportunity ,” he said . “ There ’ s a lot of heat buying assets in prime locations . Although slight legal points in valuation mechanics deter some international lenders , local lenders are currently very keen on hotels , which helps regenerate the regional economy . The breadth of the lender pool is as wide as it ’ s ever been . Spain is generally perceived as an easy country to do business in , but it ’ s very much limited to the big markets of Barcelona , Madrid and the Canary and Balearic Islands ,
Spain
Portugal
where further growth is still perceived to come .”
Critchley noted the return of investors who had been waiting for more favorable conditions . And although local players have historically dominated the Spanish market , international investors — private equity firms , family offices , insurance companies , sovereign wealth funds — are now active .
RAISING THE STAKES In its pursuit of rapid international expansion ,
France
Source : 2024 European Hotel Investor Intentions Survey , CBRE Research has context menu
Fattal has raised € 1.5 billion across three rounds of funding from institutional investors , including insurance companies and pension funds , said Ronen Nissenbaum , CEO UK , Ireland , Benelux , Spain , Portugal and US Development , Fattal Hotel Group .
Of the company ’ s 300 hotels , around 250 are based in Europe , and that figure will rise . “ Our strategy is to raise another fund , much larger , that will be more global and more internationally focused , with institutional
OUR STRATEGY IS TO RAISE ANOTHER FUND , MUCH LARGER , THAT WILL BE MORE GLOBAL AND MORE INTERNATIONALLY FOCUSED
– RONEN NISSENBAUM , CEO UK , IRELAND , BENELUX , SPAIN , PORTUGAL AND U . S . DEVELOPMENT , FATTAL HOTEL GROUP
7 1
4
3
5
Italy
Greece
investors from Europe and from the United States ,” he said .
Nissenbaum said that part of the attraction for European properties is that many remain unaffiliated . Financial distress due to owners needing to refinance at higher rates has led to more properties becoming available . Fattal ’ s strategy is to acquire both major city and resort properties , while considering secondary and tertiary areas to diversify locations and create economies of scale within the portfolio .
42 hotelsmag . com September 2024