Special Market Reports Issue 42 - BARCELONA
Transcripción
Special Market Reports Issue 42 - BARCELONA
Special Market Reports Issue 42 - BARCELONA July 2015 Special Market Reports Issue 42 - Barcelona INTRODUCTION Barcelona is the capital of both the province and the autonomous community of Catalonia. With a population of 1.6 million inhabitants, which amounts to 5 million when including its metropolitan area, Barcelona is the second largest city in Spain after Madrid and the eleventh largest city in the European Union. With its 4.6km of beach and its singular architecture influenced by the well-known Catalan architect Autoni Gaudí, the city is a renowned international tourist destination. In terms of the number of tourist arrivals, Barcelona is the fifth most visited city in Europe after London, Paris, Berlin and Rome, and ranks within the top ten most visited cities of the world. Source: Ministerio de Fomento Currently 73% of the passenger arrivals at the El Prat airport are international, with the EU countries being the major emitters. Airport Connections Barcelona’s airport - El Prat, located 15km away from the city center, is the second largest airport in Spain and the ninth largest airport in Europe in terms of passengers. In 2009, the airport completed an expansion project and built the new terminal T1 (500,000 m2), which gave the airport the needed infrastructures and capacities to become one of the most important of the Mediterranean. As an important European center in terms of air traffic, the El Prat airport hosts 84 airlines and operates as a hub for Vueling, the low cost-airline. During recent years, the airport’s passenger traffic has been continuously increasing. Source: Ministerio de Fomento Railway Connections - Ave Barcelona has several conventional and highspeed railway connections, which link the Catalan capital with several major cities in Spain such as Madrid, Lleida, Murcia, Sevilla, among others, as well as foreign cities such as Paris (the BarcelonaParis route has been operating since December 2013 in collaboration with TGV). The following chart shows the evolution of passenger traffic for the last seven years. We notice a decline in the number of national arrivals since 2011, due to the consequences of the economic crisis and to the growing number of national tourists who choose AVE (high-speed train) as mean of transportation. www.horwathhtl.com TM Special Market Reports Maritime Connectoins - Cruise and Ferry Issue 42 - Barcelona Regarding the number of overnight stays from 2010, Barcelona shows a growth of 15% and a CAGR of The port of Barcelona is one of the busiest ports in 2.8%, with 17.4 million overnight stays in 2014. the world, with 3.5 million passengers in 2014. During this past year, 68% of the passengers that arrived to the port did so in a cruise ship. Source: Instituto Nacional de Estadística Source: Ministerio de Fomento Barcelona has a high and consistent occupation throughout the year. The seasonality in the city is DEMAND mainly influenced by international demand, which reaches its maximum level during the summer months. Barcelona has registered an increasing tendency concerning demand since the 1992 Olympic Games. The Catalan capital has registered more than 7.8 million tourists (+4% more than in 2013) in 2014, and has been confirmed as the most visited city in Spain. National demand represents now one fifth of the total market (+6.6% compared to 2013). Analyzing the countries of origin of foreign tourists, France is the main source country, followed by the UK, the US and Germany, in that order. Source: Instituto Nacional de Estadística A factor that influences demand in a positive way, is the important and growing role of the MICE (Meetings, Incentives, Conferences and Exhibitions) segment in the tourism industry of Barcelona. In recent years, the constant increase in the number of events being held, has helped Barcelona to rank among the top cities in the world in terms of events and congresses hosted. Source: Instituto Nacional de Estadística www.horwathhtl.com One of the major events is the Mobile World Congress GSMA, which is held at the Fira de Barcelona at the end of February and which results in an increase in the number of overnight stays of more than 8% during that month. TM Special Market Reports Issue 42 - Barcelona SUPPLY The hotel supply in Barcelona as of December 2014 consisted of a total of 373 hotels, 34,689 rooms and 68,036 beds. Regarding the development of hotels by category, it is important to emphasize the high annual growth rate Source: Institut d'Estadística de Catalunya of the 5 star hotel supply between 2008 and 2014 (+5.1%). During this period, the number of 5 star hotels has increased from 19 to 27 establishments. Most of the hotels are 4-star establishments, representing 41% of the total supply. The sample shows a constant annual growth rate of 4% going from 120 hotels in 2008 to 158 presently. When performing an analysis by hotel category, we observe that the 5-star establishments have obtained the greatest increase in turnover. The increase in the occupancy rate by seven points and an increase of more than 40€ in the average daily rate, has led to a rise in the RevPAR greater than 37%. Moreover, in the last two years, the 3-star segment has suffered a slight decline in supply, reaching the current number of 115 establishments and 8,095 rooms. Taking into consideration the recent and future openings planned, we can estimate that the hotel supply will continue to expand in the 4- and 5-star categories. Source: Exceltur Source: Exceltur (*) Estimation Source: Institut d'Estadística de Catalunya www.horwathhtl.com Source: Exceltur TM Special Market Reports Issue 42 - Barcelona Moreover, the increase in the number of private residences available for tourism use (some not regulated), has affected the 3-star category, which has suffered a decline in terms of the average daily rate and RevPAR in the last year. HOTEL AREAS Barcelona consists of three main areas: the main area, the secondary area and the new construction area. MAIN AREA: Ciutat Vella and central area of Eixample In this area we find the main tourist attractions, as well as the main commerce and business centers. It is the most popular area for tourists and investors, and experiences high occupancy rates with a favorable impact on profitability. Unlike most European cities, the hospitality sector in Barcelona is characterized by a strong presence of independent hotels and national chains of small and medium size that together represent 94% of the hotel market. The remaining hotels (6%) belong to international chains, as can be observed in the following chart. Some of the main streets within the area are Paseo de Gracia, Avenida Diagonal and Rambla de Cataluña. It also includes some of the main areas of the city center, as well as traditional touristic neighborhoods such as the Barrio Gótico. SECONDARY AREA: Gracia, Les Corts and peripheral areas of Eixample The secondary area includes residential and business districts, as well as commercial hubs. It is not well connected to the historical center and it is outside of the usual touristic route. NEW CONSTRUCTION AREA: Sant Martí, Sants-Montjuic Source: Horwath HTL The leading national operators are Catalonia Hotels & Resorts, Grupo Hotusa, NH Hotels and H10. In this matter, Barcelona has become one of the most attractive destinations for international brands. This area covers zones and surroundings such as the 22@ neighborhood (considered as the future technological district), the new poles of development and the municipalities such as Hospitalet de Llobregat. www.horwathhtl.com TM Special Market Reports Issue 42 - Barcelona Eixample is, by far, the district that has experienced the highest number of openings in the analyzed period, registering 8 openings from the 12 analyzed: Source: Horwath HTL Currently, the international groups with greater presence in the Catalan capital are Marriott (under the brands AC Hotels, Ritz Carlton, Renaissance and Autograph Collection, with the recently oppened Cotton House Hotel), and the French chain Accor, with most of the supply under the brands Mercure, Novotel and Ibis. We can see in the chart below the international operators who are already present in the city with 4and 5-star hotels, as well as serviced apartments. Source: Horwath HTL Analyzing recent openings, we notice that three of them are hotels belonging to international chains. Fairmont has opened their first hotel in Barcelona (Rey Juan Carlos I), Hilton has increased their presence with the Hotel Alexandra, and Marriot has recently opened their first hotel under Autograph Collection (the Cotton House hotel). www.horwathhtl.com After analyzing the openings that took place during 2014 we notice that some of the hotels in the list position themselves differently in the market, differentiating themselves with different hotel concepts, such as (Praktik), by an affiliation with an international Brand like (Doubletree, Fairmont, Cotton House), or by their design like (Catalonia, H10). TOURIST APARTMENTS AND RESICENCES FOR TOURISM USE Ciutat Vella In 2005, in the district of Ciutat Vella, the high number of tourist apartments started attracting the attention of local authorities and the need of introducing regulation appeared. This lead to the design of a Use Plan of the touristic apartments in this district by the Barcelona City Council. TM Special Market Reports It is important to distinguish the two different Issue 42 - Barcelona CONCLUSION kinds of tourist products: the residences for tourism use and the tourist apartments. On the one hand, the houses for tourism use are apartments located in mixed-use buildings where The tourist sector in Barcelona has suffered the consequences of the crisis with less intensity compared to other sectors. On the one hand, the pace of demand growth has slowed in 2014. there is one or more apartments being used as shortstay accommodations combined with residential housing. On the other hand, tourist apartments are each of the units in a building that is entirely devoted to tourist rentals. The Use Plan of 2013 established that both properties could operate until July 2019. After that date, the houses for tourism use would have to abandon their operation and only the operation of tourism apartments will be allowed in Ciutat Vella. In the described period, the owners of the buildings will have to obtain as many licenses as units owned (apartments) to complete the transfer from houses of tourism use into tourist apartments. If they have not acquired all the licenses by July 2019, the right of operation will extinguish. In recent years, the number of illegal apartments has proliferated mainly due to the inability to obtain operating licenses and consequently some establishments have been closed for acting without a license. In Barcelona In October 2014, the Barcelona City Council decided to not grant more licenses for tourist apartments in any of the districts of the city. The City Council has extended the suspension of permits for this activity previously approved only in some areas, limiting the number of tourist apartments in Barcelona to 9,606 establishments. In the specific case of the Ciutat Vella district, no changes have been made and the criteria defined by the Use Plan of 2013 is still the applicable law. www.horwathhtl.com On the other hand, the supply continues to grow in 4and 5-star categories; and the main challenge that Barcelona has to manage is the number of beds, accentuated by the accelerated growth of touristic apartments. The high competition in the market, particularly between the 3- and 4-star segments, can affect especially the independent hotels. The high concentration of hotels, together with the established and growing positioning of national chains can represent an obstacle for independent hotels in terms of positioning and differentiation. The recent openings of unique hotels such as the H10 Plaza Cataluña, the Praktik Hotels and the Cotton House, and the affiliation between existent hotels and international brands through franchised agreements, show the need to adopt differentiation factors. The slight decrease in occupancy of 5 star hotels in 2014, after a strong increase in 2013, demonstrates a high level of competition and technical specialization in commercialization and distribution. The decline of the Russian market has had an important impact, however, in the medium term it is to be expected that the current Euro weakness will help compensate this decline with the growth of markets outside the Euro area (United States, Great Britain and middle East Countries). All factors indicate that Barcelona is and will remain one of the most profitable hospitality destinations, comparable to the main European cities. The keys to obtaining optimum results are the differentiation, the commercialization, and the operational excellence that should be reflected in online reviews indicators. TM Special Market Reports Issue 42 - Barcelona THE AUTHOR REINHARD WALL Director de Asset Management Email: [email protected] Tel: +34 91 598 43 44 Reinhard Wall is the Asset Management Director of Horwath HTL in Spain, Andorra and Portugal. Reinhard brings a wide multinational experience in all the aspects of the hotel management. Prior to his arrival in Horwath HTL, he worked for Intercontinental Hotel Group in Europe and Latin America. Subsequently, he took over the operational management of an 11 hotel portfolio of Gestión T3 in Spain, Portugal and Russia. HORWATH HTL Andorra Bonaventura Armengol, 10, 4 Horwath HTL is the world’s largest consulting organization specialized in hospitality, tourism and leisure. AD500, Andorra la Vella Andorra Horwath HTL is member of Crowe Horwath International, a professional association of accounting and management consulting firms founded in New York in 1915 and ranked among the top ten international professional service groups. Crowe Horwath International has offices closet o 700 cities in 125 countries. Barcelona +376 861 430 Email: [email protected] www.horwathhtl.ad Av. Diagonal 429, 5 08036 Barcelona Spain +34 93 240 28 20 Email: [email protected] www.horwathhtl.es Madrid Paseo de la Castellana 130, 7 28046 Madrid Spain +34 91 598 43 44 Email: [email protected] www.horwathhtl.es Lisbon Av. 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