GMA leading Upscale & Luxury Hotel investments in Spain
In 2022 the luxury hotel investments in Spain represented 37% of total transactions. Considering the investment criteria of most of the main active investors in 2023, and the growing demand for these type of assets, we can confirm that it is the product par excellence in the industry. These assets are characterized for being located in consolidated destinations, with diversified demand and socio-political stability, good infrastructures in terms of connectivity and in prime locations within these destinations, mainly city centres or beachfront areas. In fact, out of around 8.000 resorts, under 400 only comply with the location and size capable of offering the right room sizes and adequate services. In addition to the above, these assets must be managed by hotel groups with the appropriate brands.
GMA/Bankinter Investment has become the first Spanish investor in the luxury segment with 6 assets, and 1.018 rooms, already opened. Even before GMA consolidating its leadership with 4 hotels within the Victoria Hotels & Resorts’ new portfolio, Atom Hoteles SOCIMI, already counted with 22 Villas in the 5L-star Gran Hotel Bahía del Duque, as well as 100 units in the 5-star AC Baqueira Autograph Collection, including 2-floor suite penthouses. In the Balearic Islands we highlight the 5L-star Gran Meliá Villa Le Blanc with 159 units and the 5-star Victoria Gran Meliá of 168 units, in addition to the 287 rooms of the 5L-star Paradisus Gran Cananria and the 282 rooms of the 5-star Paradisus Salinas Lanzarote, both located in the Canary Islands.
During the COVID, an analysis of our portfolio revealed the potential of repositioning a further 3 or 4 of our assets into the luxury category, either due to their already favourable structure or through a capex rebranding project. In addition, other hotels were identified for an asset rotation process, following a pre-established line: divestment of mature assets, to reduce debt and pay dividends to shareholders, assets ideal for either family offices or hotel group owners. In addition, these divestments will provide the necessary resources to develop, rebrand and renovate, as well as allowing the firm to be prepared to take direct advantage of investment opportunities as they arise in the market.