Spain Tourism Boom to Drive Increased Hotel Investment in 2016

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Carlton Group Spain provides its clients with tremendous transactional expertise with one of the best international balance-sheet investor rolodexes and an ability to creatively structure transactions which are highly beneficial to Carlton’s clients. Carlton Group Spain has recently closed three major investment sale transactions in the Costa del Sol region, Barcelona, and Marbella.

We also provide excellent, high leveraged, multi-tranched debt and equity alternatives as well.

  • COSTA DEL SOL MIXED-USE – Carlton Group Spain acted as the exclusive financial and real estate advisor to Lone Star and H.I.G. in the sale of their 600,000 sf, 430-unit hotel and tourist apartment complex in the Costa Del Sol city of Estepona.  The transaction was completed in record time considering the complexity of the asset.  Moreover, the owner had a high basis in this asset which necessitated Carlton to facilitate premium pricing for this asset.
  • CLASS A MULTI-FAMILY APARTMENTS IN MARBELLA – Carlton Group Spain, as the exclusive advisor to a large financial institution, sold a portfolio of apartments and hotel-condos within a luxury golf resort in the resort area of Marbella as well as arranging the very favorable acquisition financing which included two years I/O.
  • BARCELONA OFFICE BUILDING SALE – Carlton Group Sale was the advisor on the sale of a large, prominent office building in the Barcelona CBD to a major Italian core fund.  Carlton exclusively represented one of the largest and most distinguished family offices in Spain on the sale of this prestigious asset.  The 131,000 sf office asset was sold for a very beneficial cap rate for the owner.  Moreover, Carlton was able to achieve this execution because aside from accessing an off-the-radar out-of-country buyer, Carlton also lined up seven year, interest only, non-recourse first mortgage at an amazingly low 1.40% margin spread which facilitated the transaction.

Spain Tourism Boom to Drive Increased Hotel Investment in 2016

By Miho Favela

According to Christie + Co., the remarkable resurgence of hotel investment in Spain will continue to be a key story in 2016. This is based on their new report titled ‘The Keys to the Spanish Hotel Market Recovery’.

Spain has been making headlines on the back of record-breaking levels of inbound tourism it has experienced in 2015 so far and following four years of consistent growth. Over 38 million foreign tourists visited the country in the first seven months of the year, 4.7% more than during the same period in 2014.

The news has been music to the ears of buyers, highlighted by extensive investments in existing hotels and the arrival of newcomers in prime cities and secondary markets.

Amparo Gómez-Angulo, Consultant at Christie + Co’s Barcelona Office and author of the report comments, “Even amid political and economic instability, the Spanish market has been able to absorb the hotel supply as tourists continued to visit the country. Now that the hotel market has roared to life we have witnessed an increase in the flow of investment from the Middle East and China, with recent high-profile sales including the W Hotel in Barcelona to a Qatari fund, and the recent purchase of the Hotel Ritz in Madrid by a joint venture between Mandarin Oriental and the Saudi conglomerate Olayan Group.”

Commenting on the hotel development boom which has taken grip of the country, Amparo says, “These new projects are spread over the country in both urban and beach destinations, with 84% of new accommodation unit projects concentrated in Barcelona, Madrid, Malaga and the Balearic Islands, and will be positioned in the 4-Star and 5-Star segments. These developments will enable the entry of new international brands currently not represented in our country, such as Hyatt or Four Seasons, and allow Spain to position itself as a more competitive destination by increasing its appeal to a more select international audience with greater purchasing power.”

We encourage you to contact the undersigned to discuss how Carlton Group Spain can assist you with your investment sale and debt and equity needs.

Howard L. Michaels                   Javier Beltran
Chairman                                     CEO – Spain & Portugal

hlm@carltongroup.com           jbeltran@carltongroup.com

(212) 716-5607                             +34 91 290-3211

 

 

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