This story was originally published on Hotel Dive. To receive daily news and insights, subscribe to our free daily Hotel Dive newsletter. Dive Brief: A partnership between investment firms Gencom and Argent Ventures, as well as hotel management company Highgate, acquired the 607-key InterContinental New York Times Square hotel in Midtown Manhattan from sellers Tishman and MetLife Investment Management, according to a release obtained by Hotel Dive. The acquisition — reportedly priced at $230 million, ...

Core Insights - Investors are increasingly interested in luxury and upper-upscale hotels in major cities globally, following a resilient 2024 with 4.8 billion global room nights and a 4% increase in RevPAR [1][2] Regional Performance - Europe and the Americas have largely returned to pre-pandemic levels, while Asia-Pacific is still recovering, with China's travel market showing significant growth potential for hotels [2][5] - Analysts project global RevPAR growth of 3–5% in 2025, driven by leisure travel, corporate bookings, and international group demand [2] Investment Trends - Major cities like London, New York, and Tokyo are attracting investors due to high demand for premium and lifestyle hotels [3] - Urban hotels, particularly in the luxury segment, are gaining attention from institutional investors and private equity [4] - Global hotel investment is expected to increase by 15–25% in 2025, influenced by factors such as upcoming loan maturities and deferred capital expenditure [4] Market Opportunities - The evolving hotel market presents opportunities for both new investors and established operators, with international travel and corporate events driving performance in major cities [5] - Careful asset management can enhance returns, although results will vary across regions, necessitating informed, data-driven strategies [5] Future Outlook - As 2025 approaches, luxury and lifestyle hotels in major cities will remain a priority for investors seeking growth, stability, and long-term opportunities in the global hotel sector [6]

Core Viewpoint - InterContinental Hotels Group PLC (IHG) has shown strong investment performance, with a total return of 179% over the past 5 years, outperforming the S&P 500 index [1]. Group 1 - IHG shares have been a solid investment over the past few years [1]. - The total return of IHG over the last 5 years is 179% [1]. - In comparison, the S&P 500 has delivered a lower total return during the same period [1].

Investment Rating - The report indicates a strong investment interest in the hotel sector in Spain, with a total investment volume of €506 million in Q1 2025, although this is a decrease from €660 million in Q1 2024 [12][15]. Core Insights - Spain is projected to attract around 100 million foreign tourists in 2025, marking a significant recovery and growth in the tourism sector post-Covid-19, with nearly 94 million tourists recorded in 2024, a 12.3% increase compared to 2019 [3][4]. - The hotel investment landscape is primarily focused on upscale establishments, with four-star hotels accounting for 45% and five-star hotels for 24% of the total investment, reflecting consumer preferences for higher-end accommodations [12][13]. - Barcelona is highlighted as a key investment destination, representing nearly one-third of the total investment for the quarter, alongside significant investments in Madrid and popular coastal cities [13][14]. Summary by Sections Tourism Dynamics - The tourism sector in Spain is experiencing a dynamic shift towards experiential leisure activities, which has positively impacted international tourism [2]. - In the first months of 2025, Spain recorded over 10.4 million foreign tourists, a 7% increase compared to the same period in 2024, aligning with the forecast of reaching 100 million tourists for the year [4]. Hotel Investment Trends - The majority of hotel transactions in Q1 2025 were concentrated in upscale hotels, with notable investments in cities like Barcelona and Madrid, particularly near major tourist attractions [12][13]. - The report details significant transactions, including the acquisition of Hotel La Bobadilla in Granada and the development of a new hotel on Madrid's Gran Vía [16]. Market Performance Indicators - The average daily rate (ADR) and revenue per available room (RevPAR) metrics are crucial for assessing hotel performance, with RevPAR recorded at €72.97 in November 2024 [6].