One of the most promising ways to increase capital is to invest in the hotel business. The success of such an investment depends first of all on how correctly the tourist destination was chosen. You can find various property options at this link https://yes-mallorca-property.com/offers/typeprop/land-plot/.
Tourist boom in Spain
Spain is experiencing a real tourist boom. The sunny and hospitable kingdom has been very popular among travelers from all over the world for at least the last 20-30 years. It is rare in which country so many attractive features can be found:
- mild and pleasant climate – there are regions “warmer” or “cooler”, and everyone can choose a place where it is more comfortable;
- magnificent landscaped beaches stretching for hundreds of kilometres;
- the nature of amazing beauty (there are 15 national parks alone, and there are many other wonderful places);
- a developed transport network including airports, seaports, roads and railways;
- natural products;
- social security – Spain is a developed country with European safety standards;
- a friendly population that respects visitors;
- low prices for food and everyday goods (compared to neighbouring France or Italy, for example);
- an abundance of historical monuments and attractions;
- excellent opportunities for profitable shopping.
This list can be continued by anyone who has visited Spain at least once. Indeed, it is very pleasant to live and relax here. Therefore, every year the number of tourists not only does not decrease, but also constantly increases. Even the recent events in Catalonia (referendum on independence) affected the tourist flow only in October 2017. The number of tourists has decreased by 4.7% per year. However, just a month later, the tension subsided and everything was back to normal.
Who buys hotels in Spain?
Hotels in Spain are bought by both individuals and specialized companies. As a rule, corporate investors from Spain account for just over a third of all sales. About 66% of deals are made by foreign companies. If we talk about investors who are private individuals, then 70% of such hotel buyers are citizens of Spain or neighboring France.
Due to the steadily growing flow of tourists, the hotel business has been and remains one of the most profitable and recommended areas for capital investment. An important advantage of Spain is that, unlike other European countries, foreigners can buy here commercial facilities almost without restrictions. The procedure itself is exactly the same as in a transaction with residential real estate. It is extremely important to choose the right object. There is no universal advice here, so the specialists of Cadespa agency are focused on a particular buyer – its budget, as well as the desire and ability to support the business.
In recent years, there has been an interesting trend: if previously investors mainly bought large luxury 5-star hotels, but today the choice often falls on compact hotels (up to 15-20 rooms), well decorated and with a high level of service. Some prefer to buy inexpensive 3-star hotels of medium or outdated category for the purpose of modernization and renovation. In this case, it is important to have a fairly clear idea of future costs.
Investment companies that specialize in the hotel business often use the following strategy: first the buildings they own are sold and immediately rented from new owners. The money generated by the sale can be used for further brand promotion and development. Not surprisingly, for example, in Barcelona, about 32% of hotels are rented.