Some 100 hotels for sale in Mallorca

Playa de Muro, one of the resorts where hotels are up for sale.

08-11-2020Javier Furones

The Idealista and milanuncios websites currently have some 100 hotels in Mallorca up for sale, to which can be added certain hotel groups’ entire range of establishments. There are two such groups, one on the market for 95 million euros; the other for 280 million. In terms of total sales value for all the establishments that are available, this comes to around 1,000 million euros.

There are hotels for sale in mostly all of the main tourist resorts, but especially in Cala Millor, Paguera, Playa de Muro and Playa de Palma. Some groups are also offering part sales of up to 49% for overseas establishments, e.g. in the Dominican Republic and Mexico. This approach, it is hoped, will give companies much-needed liquidity for the 2021 season.

Hotel groups in Mallorca indicate that the situation is very difficult and so they are opting either for outright sales to private investors or foreign funds or are looking to raise capital through share offers. There has never been a situation like this, the pandemic having destroyed business to such an extent that there are hotel companies on the point of bankruptcy.

Among the hotels on offer are one in Paguera for 48 million euros, two in Playa de Muro for 20 million and 60 million respectively, and others in the south of the island for up to 120 million. In Soller, five establishments are available for 18 million, while away from the resorts there are different types of establishment on the market in places such as Alaro, Costitx, Santa Eugenia and Sineu — agrotourism, hostels and holiday rental properties.

To give an idea of the extent of the offer, figures for 2018 from the Balearic tourism ministry showed that there were 1,789 establishments of one type or another in Mallorca (these don’t include holiday rental properties). Establishments classified just as hotels, as opposed to aparthotels, tourist apartments or other categories, numbered 632.

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Source: majorcadailybulletin.com