Nery Alaev writes about investment into Spain.
Direct investment in the hotel sector in Spain grew by 18% up to July 2016, reaching €996m. This is higher than the €840 million for the same period in 2015, according a new report, ‘Spanish Hotel Sector Report’ authored by BNP Paribas Real Estate.
I’ve decided to investigate and conclude.
The report, covered by Europe Real Estate, was put to the media by BNP Paribas Real Estate and presents a sunny picture for Spain, which relies heavily on tourism to make up its annual Gross Domestic Product (GDP) as a nation.
Tourism, however, wasn’t the only driver of investment. Ramiro Rodríguez, European Economist at BNP Paribas Real Estate, says:
“The interest on the part of domestic and foreign investors seen since 2014 remains strong in 2016, principally with regard to leisure tourism.
Nevertheless, the demand for business travel in Madrid, Barcelona, Marbella and the Balearic Islands is growing. Hotels are also being sought for refurbishment, brand changes and the raising of guest profiles.”
From this, it appears that there is demand from business-focused investors as well as tourism-focused investors. This is positive for Spain’s economy at large as it implies that more business is coming to Spain, a country that is currently leaderless but still growing at a respectable, if not impressive, pace.
Outlook for next year
As for 2016, the opinion of BNP Paribas Real Estate is:
“Hotel investment will continue to climb in 2017 and will focus on value added strategies. Investors are confident that expenditure on the part of tourists will continue to grow and it is anticipated that Spanish residents will also increase their activity in this market.“
In summary, Spain is growing and its hotel sector is benefitting from this – the time to invest may be now.
Nery Alaev is the current Director of ESN Investments GmbH, which engages in acquisition and development of commercial and residential property in Germany and Austria.