Alternative financing for the purchase and refurbishment of hotel facilities
There is no doubt that the hotel sector is going through an exceptional moment in Spain, and the data clearly indicate that the recovery after the pandemic, already distant in time, has been dazzling. It is no coincidence that before the summer the figures were transcendent: it led real estate investment with 879 million euros in the second quarter of the year, and part of this momentum was and is due to the interest of investors in luxury assets. In short, investment in hotels accounted for 41% of the total in real estate, which is no more and no less than double the figure for the same period last year.
This is a key moment for the sector, which is breaking records and has surpassed the 50 million visitors barrier up to June, 14% more than in the same period in 2022. In more detail, most of the transactions are led by institutional funds - representing 52% of the total - and by private investors - 31%. In terms of the origin of the capital, international buyers, mainly from France and Saudi Arabia, dominate the market with 68% of investment compared to 32% from domestic buyers.
DEXTERAmong its financial products, it makes possible the contribution of capital via investment funds not only for the purchase of hotel facilities but also for the refurbishment of the same (capex), in the circumstances and patterns demanded and agreed by the entrepreneur.
Today, many small hotels are upgrading and modernising their facilities, expanding them, and alternative private equity financing is an option increasingly being considered by hotel owners or by those deciding to purchase and then work on the asset.
From the Business Development Department of DEXTERGuillermo Díaz, the person in charge of the project, points out that "In the first half of the year we have had an increase in the demand for loans in this sector, because national tourists are very present in certain areas of the territory and of course the international public. This makes entrepreneurs see constant business opportunities and look for capital to grow; and that is where we come in, making it possible through the investment funds that we manage and represent".concludes Díaz.
Alternative financing for the purchase and refurbishment of hotel facilities
There is no doubt that the hotel sector is going through an exceptional moment in Spain, and the data clearly indicate that the recovery after the pandemic, already distant in time, has been dazzling. It is no coincidence that before the summer the figures were transcendent: it led real estate investment with 879 million euros in the second quarter of the year, and part of this momentum was and is due to the interest of investors in luxury assets. In short, investment in hotels accounted for 41% of the total in real estate, which is no more and no less than double the figure for the same period last year.
This is a key moment for the sector, which is breaking records and has surpassed the 50 million visitors barrier up to June, 14% more than in the same period of 2022. If we go down to detail, most of the transactions are led by institutional funds - accounting for 52% of the total - and by private investors - 31%. In terms of the origin of the capital, international buyers, mainly from France and Saudi Arabia, dominate the market with 68% of investment compared to 32% from domestic buyers.
DEXTER, among its financial products, makes it possible to provide capital via investment funds not only for the purchase of hotel facilities but also for their refurbishment (capex), in the circumstances and patterns demanded and agreed by the entrepreneur.
Today, many small hotels are updating and modernising their facilities, extending them, and alternative financing with private capital is an option that is increasingly being considered by hotel owners or by those who decide to make a purchase and then work on the asset.
From DEXTER's Business Development Department, its head, Guillermo Díaz, points out that "in the first half of the year we have had an increase in the demand for loans in this sector, because national tourists are very present in certain areas of the territory and of course the international public. This makes entrepreneurs see constant business opportunities and look for capital to grow; and that is where we come in, making it possible through the investment funds that we manage and represent", concludes Díaz.
