38%

62%

35%

65%

Malaga Hotel Market Review 20181

Profitability 2017 - 3 to 5 stars onlyMarket profile

Visitors Overnights

Spanish International

Transport

AirportDistance to city center: 11KmPassengers (2017): 18 million (+11.7%)Destinations (2017): 146

High Speed RailwayLocated in the city centerPassengers (2017): 2.4 millionMalaga-Madrid line: 512km in 2h and 40m

Hotel supply

Malaga has become one of the key cities in Europe for city-breaks. With its mild weather, beaches, gastronomy and cultural offer, the city is today well connected to the world through the fourth largest airport in Spain (18 million pax and 146 direct conections).Throughout the period 2012-17 the number of visitors has increased +39% and the overnights +37%. 1.3 million tourists visit annually Malaga today, 62% of them from abroad.Malaga is now the third best urban destination in occupancy (78%, behind only Palma, 81%, and Barcelona, 79%). ADR has grown from 68€ in 2012 to 90€ in 2017 and RevPar stands at 70€ (2017), sixth in Spain.The size of the hotel market is still limited, with 103 hotels and 5,272 hotel rooms. Accor is the leading chain with 3 hotels and 452 rooms.

Main hotel chain

Total1.3 M

Total2.5 M

ADR€90

Occupancy78%

RevPar€70

MALAGA HOTEL MARKET REVIEW

2018

RESEARCH REPORT

3 hotels452 rooms

62%

38%

65%

35%

Hotels103

Rooms5,272

Beds10,625

Source: INE Source: INE

Source: H&C, Aena, Renfe Source: INE

December

November

October

September

August

July

June

May

April

March

February

January

819 798 878 949 921 871

994 11831258 1297 1467 1622

2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

456 442 472 524 518 508

492 524 562581 676

810

2 0 1 2 2 0 1 3 2 0 1 4 2 0 1 5 2 0 1 6 2 0 1 7

Malaga Hotel Market Review 20182

Visitors

Seasonality of tourists (overnights)

2011 2014 2017

Spanish (thousands)

International (thousands)

39%

The number of visitors to the city of Malaga has been constantly increasing since 2012. With a growth of 39% the number of visitors has increa-sed from 947 thousand in 2012 to more than1.3 million in 2017. The city has an international ho-tel market with international visitors represen-ting 62% of the total visitors in 2017.

HOTEL DEMAND

With the weight of international tourists’ visitors and overnights amounting to 62% and 65% respectively in 2017, the city of Malaga has consolidated its posi-tion as a Spanish international tourism destination. According to the trend of the last years, it is expected that the weight of international tourism will continue to grow.In the coming years, the city of Malaga will conti-nue to be a key city for urban hotel development in Spain, given its high dotation of infrastructures (an excellent highway access, an international airport, a high-speed railway station and, a cruise terminal, among others), its large market potential (the city and the surrounding area have capacity to attract and manage more tourists) and its solid fundamentals (cultural and summer destination)

Overnights

Spanish (thousands)

International (thousands)

37%

The overnights have performed in a similar way that the visitors, growing 37% during the period 2012 – 2017. Thanks to this growth overnights have increased from 1.81 million in 2012 to 2.5 million in 2017. Overnights of foreign tourists have led the market, representing 65% of the to-tal in 2017.

Source: H&C, INE

Source: H&C, INE

Source: H&C, INE

August

July

April

SummerEaster

2012 2013 2014 2015 2016 2017

2012 2013 2014 2015 2016 2017

Max - 271K

Min - 153K

947 9661,034 1,105

1,1941,319

1,8131,980

2,136 2,246 2,3882,492

300K

250K

200K

150K

100K

50K

0

Malaga historic city center

Vincci Posada del Patio 5*

Room Mate Larios 4*

AC Malaga Palacio 4*

Molina Lario 4*

Petit Palace 4*Barcelo Malaga 4*

Sercotel Malaga 4*

Guadalmedina 4*

NH Malaga 4*

Ibis Malaga 2*Suite Novotel Malaga 4*

Tryp Alameda 4*

Mariposa Hotel 4*

Ilunion Malaga 4*

Tribuna Malaga 3*

Salles Malaga Centrum 4*

Don Curro 3*

Atarazanas 3*

Room Mate Valeria 4*

MS Maestranza4*

Eliseos 3*

H. Del Pintor 3*

Parador Gibralfaro 4*Los Naranjos 3*Las Vegas 3*Gran H. Miramar 5*GLHotels in East Malaga

Hilton Garden Inn 4*Campanile 3*Ibis Aeropuerto 2*Vincci Malaga 4*

Hotels in West Malaga

Malaga Hotel Market Review 20183

Main hotel chains

HOTEL SUPPLY

Hotels Rooms

3

2

1

1

2

452

327

221

214

211

Beds 10,625

Accor

Wyndham

Barceló

Marriott

Vincci

Hotels 103

Malaga hotel market: deals and projects

Key transactions 2016/2017 Main hotels in the pipeline

NH Malaga (245 keys)Tryp Alameda (136 keys)Palacio Sonora C/ Granada (83 keys)

Hotel Rascacielos en El Puerto (350 keys)Palacio Marqués De La Sonora (46 keys)Vincci en Hoyo de Espartero (138 keys)Palacete de la Merced (17 keys)Hotel Boutique Malaga (16 keys)

Currently, Malaga only boasts one five star Gran Lujo hotel, it is the €60 million Gran Ho-tel Miramar. However, the situation will change in the coming years with the project of the new Hotel-Suites Malaga Port 5 star Gran Lujo to be erected right on the port. With an investment of approx. €115 million, the hotel will compri-se 352 rooms and 35 floors . Other high quality hotel project (four stars - premium) in planning stage is the 46-room Palacio Marqués De La So-nora being the historic city center.

Source: H&C

Hotel supply 2017

Rooms 5,272

Hotel chain

#1

#2

#3

#4

#5

Source: H&C

Source: H&C

68 67 72 76 8190

2012 2013 2014 2015 2016 2017

62 6571 73 77 78

2012 2013 2014 2015 2016 2017

42 4451 56

6270

2012 2013 2014 2015 2016 2017

Malaga Hotel Market Review 20184

About us

Evolution of main performance parameters

HOTEL MARKET PERFORMANCE

ADR (€) Occupancy (%) RevPar (€)

Malaga vs top Spanish cities

ADR (€) Occupancy (%) RevPar (€)

San Sebastian

Barcelona

Cadiz

Palma de Mallorca

Madrid

Sevilla

Malaga

Santander

Bilbao

Valencia

128

128

103

99

96

90

90

86

84

77

Palma de Mallorca

Barcelona

Malaga

Madrid

Sevilla

Bilbao

Alicante

Cadiz

Girona

San Sebastian

81

79

78

76

75

74

73

72

72

72

Barcelona

San Sebastian

Palma de Mallorca

Cadiz

Madrid

Malaga

Sevilla

Bilbao

Santander

Alicante

102

92

80

74

72

70

67

62

56

56

The city of Malaga has an impressive level of occupancy (78%) with ADR and RevPar of 90 € and 70 € respectively.

Jose de la Maza - Partnerjm@aninver.com / +34 639 90 63 48

Alvaro de la Maza - Partnerama@aninver.com / +34 661 24 97 63

Office - Paseo de la Farola 8, Entreplanta 5. Malaga 29016 (Spain)aninver@aninver.com / +34 951 76 79 73

With an increase of +13% and +11% (2016-2017) in RevPar and ADR respectively and an occupancy of 78% (only behind Palma de Mallorca and Barcelona), Malaga is a key urban destination in Spain. The market attracts interest of international chains but there are few opportunities available because land for hotel development is very scarce due to alternative uses and booming

land prices.

Source: H&C, Exceltur2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017 2012 2013 2014 2015 2016 2017

68 67 72 76 81 9062 65 71 73 77 78

42 44 51 56 62 70

Source: H&C, Exceltur

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