Covid impacts the Balearic Islands: at least 18 hotels for sale

2 min reading time

Published on 12/11/20 - Updated on 17/03/22

Ibiza, Spain

The hotels were faced with a summer of almost zero demand and a wave of cancellations, as a result of which many owners were forced to accelerate the sale of assets to obtain the cash needed to deal with the crisis.

In the last 30 days, at least 18 hotels have been on sale in the Balearic Islands for more than 174 million euros.

Occupancy rates were lower than expected in a moderately optimistic scenario,

recognized Maria Frontera, president of the Federation of the Hotel Industry of Majorca (FEHM). 

It is impossible to resist without revenue and with an intact tax charge. 

In Mallorca there are at least 11 hotels for sale, mainly 3-4 star hotels by the beach or just a few meters from the beach. The average size of the hotels is 100 rooms.

The offers are new in 3 and 4-star hotels, with 920 rooms for a total of 82.85 million euros. In addition, there are two boutique hotels: one with 20 rooms, with vineyards and a Michelin-starred restaurant and the other with 50 rooms.

The sale of a hotel chain 'composed of 14 4-star hotels located on the island of Mallorca. The total number of rooms in the hotels amounts to 2,125'. Similarly, four hotels in Magaluf, and in this case are sold with operator.

In Menorca there are five hotels and aparthotels (325 rooms) for sale for 37.3 million euros. And in Ibiza, there is a 10-room hotel in an 18th century building and another 90-room hotel.

The numbers are considerably higher if we add a third 340-room hotel in Ibiza (in Santa Maria) which is sold for 120 million euros. With this property, the hotels for sale in the Balearic Islands would be around 295.65 million euros.

Both business directors and consulting firms believe that, to strengthen the balance sheets, it is expected that the number of hotels for sale will increase in winter, because, as Antonio Doménech, General Manager of Playasol Ibiza Hotels, emphasized: 

The sale of an asset can be a solution for a company's balance sheet, so there will be portfolio movements.

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