Sustainable tourism in the Community of Madrid
Investment in tourism in Madrid focused on sustainability reflects a significant shift in how tourism development is approached in the region. With an emphasis on sustainable projects and considerable investment, the region is positioning itself as a leader in responsible and sustainable tourism. Let's look at some relevant aspects of this investment, based on current data and projects.
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Madrid Tourism Strategy (2023-2026)
The Madrid's tourism strategy for the period 2023-2026 involves a significant investment of 250 million euros. With 125 initiatives distributed in 20 lines of action, this strategy is a firm step towards a more sustainable tourism.
Tourism sustainability projects
The approval of eight tourism sustainability projects in the Community of Madrid, with a total of 24,891,000 euros in financing.. Backed by Next Generation EU funds, they range from the promotion of sustainability in protected natural areas to the consolidation of energy-efficient and environmentally friendly tourist destinations.
Impact of investment in sustainability
Investing in sustainability in Madrid seeks to preserve and enhance natural and cultural resources, in addition to offering a high quality tourism experience that is respectful of the environment. Diversifying tourism offerings and promoting lesser-known areas helps to decentralize tourism, relieving pressure on popular destinations and distributing economic benefits equitably.
Tourism investment in the Community of Madrid, focused on sustainability, reflects a commitment to responsible and sustainable tourism development. The strategy adopted seeks to boost economic growth and consolidate Madrid as a benchmark tourist destination, ensuring that this development is sustainable and beneficial for the environment, communities and visitors alike. These initiatives, backed by significant public investment, position the capital as an example of how sustainable tourism can be integrated into a comprehensive tourism strategy.
Private investment, on the other hand, has experienced significant growth, especially in the hotel sector, reflecting the solid recovery of the tourism sector in the region.
Recovery and boom in hotel investment
Hotel investment in Madrid is experiencing a moment of remarkable growth. It is estimated that between 2023 and 2024, approximately 6,000 million euros will be invested in the sector.6 billion will be invested in the sector between 2023 and 2024, maintaining a level of investment similar to that of 2022. This is due to an increase in hotel rates and occupancy, which has generated great interest among real estate investors in acquiring hotels.
Despite macroeconomic and political uncertainty, as well as the tightening of financing conditions due to the inflationary crisis, the hotel sector has shown great liquidity and resilience. The recovery of tourism and the robustness of the sector in Spain are key factors that have maintained investor confidence and interest in hotel assets.
Notable transactions, such as the acquisition of 17 hotels managed by Meliá by the Abu Dhabi Investment Authority fund, with an investment of close to 600 million euros, demonstrate the ongoing interest in high-value hotel properties.
Investor diversity
In addition to large institutional investors, such as funds and insurance companies, the hotel industry attracts high net worth individuals and hotel operators. Specific initiatives such as Azora's second fund aimed at investing up to 2 billion euros in European hotels reflect a positive medium and long-term view of the hotel industry, as well as a commitment to the growth of the tourism sector in Europe.
Private investment in the tourism sector in the Community of Madrid, especially in the hotel industry, is showing a positive and solid trend. The recovery of tourism after the pandemic and Spain's position as a tourist destination are driving this growth. The diversity of investors and transactions indicate continued confidence in the sector's potential.
Hotel investment in Madrid is increasingly focusing on sustainability, a crucial aspect in response to the growing demand for environmentally, socially and governance (ESG) responsible practices.
The hotel investment market in Madrid is expected to remain buoyant through 2023, with deals valued at between EUR 2 billion and EUR 3 billion.. The incorporation of and compliance with ESG criteria is emerging as a key formula for adding value for both investors and clients, as a differentiating proposition driven by consumer demand concerned about sustainability and climate change.
In addition, investment in the luxury hotel sector in Madrid is undergoing a significant shift towards sustainability, based on four key concepts: exclusivity, excellence, digitalization and sustainability. This approach becomes a fundamental pillar to add value to any investment.