Hotel investment plummets in 2020 more than 60% due to COVID-19

Destinations

CBRE points out that, of the total investment in the year, 74% was allocated to individual assets, while assets from portfolios and portfolios captured 26%. A figure higher than that of 2019, when it reached 21%.The year of the pandemic reversed the trend of previous years, observing that investment in urban assets reached 55%, while vacation assets accounted for 61% of total investment.The Balearic Islands topped the list of main destinations in 2020, with 34% of the total investment, followed by Barcelona with 18% and the Canary Islands, with 13%.

The Balearic Islands accounted for 34% of total hotel investment

Regarding the investor profile, institutional investment led the activity, going from 29% in 2019 to 44% in 2020. In second position was private investment, family office and real estate companies or other sectors with 37% and hotel groups the last with 16%.Regarding the hotel category that monopolized the highest volume of investment in 2020 was that of 4-star hotels (38%), followed by 5-star and grand luxury hotels (33%), while 3-star hotels reached 9% of the total investment. Despite the decline in investment, from the consultancy they trust “a recovery of the market this year 2021”. The head of investments in properties continental Europe of CBRE Hotels, Miguel Casas, has predicted a considerably higher activity that will accelerate as soon as transactions begin to err from the second half of the year.