Date: December 2017
Location: Oropesa del Mar, Castello, Valencia, Spain
Name: Hotel Koral
THPT Comment: You don’t often hear the words Hotel & Auction in the same sentence…. maybe this is the way forward?
No.of Keys: 210
The Offer: Banco Santander has put Hotel Koral up for auction for €7 million. The auction is open until 11 December.
The bank took ownership of the property as the result of a debt that it had granted to the previous owners, amounting to €2,127,677. Moreover, the property has another charge over it in the form of an unpaid loan amounting to €700,000 from Cajamar. The investor that offers the highest bid will acquire the property free of charges. All of the information about the bid is available on the BOE’s auction website.
The electronic auction opened on 21 November. The value of the auction is €7,082,465 and interested parties must pay a deposit of €354,123. According to information provided 5th December 2017 on the BOE’s auction website, no bid has yet been formalised for the property.
The bank has put the property on the market at a time when there is a great deal of investor interest in hotels. Hotel profitability has grown by 32.5% in Valencia due to the strength of international tourism and the recovery in domestic consumption, according to a report by the consultancy firms STR and Magma Hospitality Consulting.
The growth in hotel profitability in the Community of Valencia is much higher than in Madrid (18.6 %), Málaga (15.38 %), Barcelona (14.6%), Marbella (14.5 %) or Sevilla (14.4 %). The strong performance in terms of profitability is being seen despite competition from tourist apartments, which are being marketed through online platforms such as Airbnb.
The barometer from STR and Magma HC is based on data from 145,000 rooms in more than 800 hotels located all over Spain. Data corresponding to the first half of 2017 shows a very positive trend with double-digit growth for the main indicators in key destinations and a general upward trend in terms of average revenues per available room (RevPAR) and in the average price per occupied room.
First Seen: Aura Real Estate