BERLIN — Horacio Alcalá, CEO of Madrid-based hotel development and management firm Alsotel, said there's plenty of room for hotel development, ownership and management in Spain, despite it being one of the most favored markets for such activity over the last five years, especially in its resort offerings.
Speaking exclusively to Hotel News Now at the International Hospitality Investment Forum, Alcalá said Spain’s excellent transportation infrastructure set up prior to the global financial crisis and a continued emphasis on tourism to as an economic driver are fueling more growth.
“Spain is repositioning itself as a destination, mainly in the luxury angle, which is where most of the investments have taken place [in] the big boxes, what I called resorts, 300 or 400 rooms, and we are seeing the repositioning of Madrid, the Balearics … and the next one to come is the Costa del Sol. And I have no doubt that Barcelona will turn around,” he said.
Alcalá said firms such as his are in a stronger position due to the general absence because of market conditions of international private equity.
“You need to have your feet on the ground to seize the more rare opportunities that give good value returns right now,” he added.
Alcalá said a big challenge is the buyer-seller divide on transaction values.
“[Buyers] want to see a discount in the price, and at the moment the market is not having it that strong. … There might be a slight discount, but it is not as high as people were expecting,” he said.
That provides even more opportunity for Alsotel and its peers, firms flexible enough to cover investment and management.
“The business plans tend to fulfill themselves, the [capital expenditure] tends to keep and the operational results are better because of a better pre-opening of the assets,” he said, adding he also saw growth in Spain in select-service hotels.
For more of Alcalá’s comments, watch the video above.