Spain has become a magnet for foreign real estate investors, providing a great opportunity to buy resort hotels at a discount after the covid crisis has ravaged the tourism industry.
However, thanks to support from the government, local hoteliers are holding onto their property.
In an effort to save the local market, the government is aiding the industry through incentive programs and subsidies.
In 2020 Spain suffered an 80% drop in profits from tourism, forcing most chain and family-owned hotels to close down. It used to be the second most visited country in the world. Dozens of international real estate funds saw this as a prime opportunity to buy up the local industry at a discount.
Thanks to vacation programs and government-backed loans, hotels managed to survive 2020 without changing hands too much. Nonetheless, there are sellers out there.
Italy is going through a similar situation, where real estate investors are seeking out opportunities to renovate hotels before mass tourism comes back, which is believed to happen sometime after 2023.
In Greece, large hotel chains, such as Four Seasons, opened their doors ahead of time, promoting renewed investor interest in the local market. Several dozen three to four-star hotels have been foreclosed and sold off to new owners.
