Barcelona, as a tourist city, attracts on average 1 to 2 tourists for every local resident in its best years. Spain is actively developing infrastructure to increase Barcelona's attractiveness for travelers. The main profit from this goes to hotel owners. To be one of them, it is enough to buy a hotel in Barcelona.
The cost of small hotels in Barcelona can start from 800 thousand euros. However, for this price you can only buy a relatively small building located in a less than attractive location.
A high-end hotel usually costs between 5 and 10 million euros and above. Prices for the best hotels can reach tens of millions of euros, especially if it is a complex on the sea coast. It is important to understand that the cost reflects the expected profit: the more expensive the object, the higher the potential return for the investor.
The hotel's profitability consists of two parts. The first is the current profit received from running a business, that is, from renting out rooms and serving customers. Obviously, the closer the hotel is to the sea, the higher the price for guests can be set. The most expensive hotels are located on the first line in tourist areas.
The good news is that the value of a hotel as a commercial property is directly related to its profitability. As a result, the average annual profit remaining after settlements with the management company is approximately 4-6 percent per annum for all attractive investment options.
In addition to the current profitability, the investor can count on profit from the resale of the property in the future. Now is a good time for investment, since the tourism industry is only growing, which leads to an increase in the cost of objects.
After purchasing a hotel, the question arises about its management. There are two possible options here. The first is to manage the hotel yourself, devoting all your time to business development, marketing, communicating with staff and clients, as well as preparing reports for tax authorities and other administrative tasks.
The second option is to enter into an agreement with a management company. This will require giving away part of the profit, but in return the investor will receive passive income. Personal participation is not required, you can be anywhere, mind your own business and periodically see the receipt of money into your account.
There are usually several offers of hotels for sale in Barcelona, and each option requires careful analysis. It is best to consult with professionals, since investments in commercial real estate are always associated with local specifics, known only to experienced market players.
Local specialists have knowledge about the location of hotels, their attendance and occupancy at different times of the year, as well as other important nuances.
You can start your search for a hotel in Barcelona in our private database.
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