Market driven by a number of large-scale purchases
More than €386 million in single-asset transactions has been invested in building major (more than €10 million) golf resorts so far in 2014, a new report by HVS London says. That compares to nothing at all in 2013 and €128 million in 2012. Hotel investors’ appetite for European golf resorts has gained momentum, driven by economic recovery.
They are now seen as attractive investments as they offer multiple revenue streams and potential for future development. They also have on-property, well-regarded hotels. The trend contrasts with the US, where golf is in decline. American investors are looking to Europe.
After a boom in the 1990s, Europe was thought to be oversupplied with golf resorts and there were overall RevPAR declines.
Now, however, big transactions include Ireland’s Doonbeg Lodge and Turnberry, both by the Trump Hotel Collection for a combined €53 million; Spain’s Hotel Guadalmina Spa and Golf Resort in Marbella to the George Soros-backed Hispania Activos Inmobillarios for €21.5 million; Portmarnock Hotel & Golf Links in Ireland for €29.8 million; and the Wentworth Club in the UK by Beijing-based Reignwood Group for €162 million.
[pictured: Hotel Guadalmina Spa and Golf Resort]