Following on from our annual report “Most Competitive Cities”, which analysed the key Spanish urban destinations recording the highest levels of RevPAR, we now present our analysis on the following seven cities registering higher levels of profitability in Spain - Santander, Alicante, Córdoba, Granada, Toledo, Santiago de Compostela and Valladolid.
Considering the evolution of the key performance indicators in these destinations as well as the outlook and growing interest of investors noticed in the last few years (explained in more detail in our 2017 “Hotel Investment” report), we consider these destinations to be secondary.
The growing tourist market for these cities, as well as the recovery of a large part of the domestic segment, has led to higher volumes of demand resulting in a consolidation of their hotel market and positioning them as key destinations in Spain. from both a domestic and international perspective.
From an investment point of view, secondary cities represent an attractive alternative to primary destinations as they offer higher returns in comparison. Primary destinations have seen decreasing yield levels in the last few years as a direct impact of the large volume of investments received.
Source : Christie & Co