Just like after the last crisis in 2008, the Corona crisis and the inflation crisis are leading to more hotels, B&Bs and other commercial properties coming out at reduced price . There is thus an opportunity to buy commercial properties in Spain at good prices. Through our networks, we are constantly aware of what and when something comes out and we also have several Swedish players who will buy up different types of businesses in the future. However, one should be realistic about what is required to be able to live on the income of smaller businesses.

Difficult to achieve profitability in smaller hotels and B&Bs

More and more people who contact us have a dream of running a small hotel, a B&B or a simple hostel in southern Spain. Unfortunately, it is important to emphasize that these types of investments are in most cases not profitable in the long term.

Smaller guesthouses and B&Bs almost always become more of a lifestyle than a functioning business. For a hotel to break even, many in the industry say you need at least around 100 rooms. Anything below that level practically requires either having other income on the side, or being prepared to accept very small margins.

Hostel businesses are also particularly difficult to operate with a stable net return because guests often only stay for 1–3 nights. This leads to high staff workload, a lot of administration and difficulties in filling rooms continuously.

Competition from Airbnb and booking platforms

We have been talking to several players recently. Developments over the past ten years have made things even tougher for traditional hotel and B&B businesses. Platforms like Airbnb and Booking.com has fundamentally changed the market. Many travelers today prefer to rent a private apartment or a self-catering holiday home, which means that smaller hotels are losing the market they previously could survive on.

At the same time, A private residence rented out via these platforms often provides a better net return than a smaller hotel. You reach a broader target group, have lower fixed costs and more flexibility in renting.

Recommendation

For most people who want to combine investment and lifestyle, we therefore recommend looking at a larger house or some apartments in attractive areas such as Nerja. These investments are both easier to manage, more profitable in the short term and safer in the long term.

Note that most listing that come out in this segment do so through lawyers, etc. These are therefore “ off-marketsales”. Write to us if you are interested and we will return with a report on the opportunities in the market here and now. info@spanskafastigheter.se

Large property for sale in Nerja

Hostal, hotel and course building for sale

Example of property for sale:

Unique rustic property for sale in Torrox, Málaga

A large and charming rustic style property with pool and three separate units, perfect as a rental investment or a rural retreat. The property offers panoramic view over Frigiliana, the mountains and the Nerja coast.

More information about the property in Torrox
Area: 523 m²
Plot size: 5,514 m²
Number of bedrooms: 7
Number of bathrooms: 5 + 1 guest toilet
Terraces: 6
Community Fee : N/A
Annual tax: N/A
Reference : SF7456
Price : 880,000 €
Address: Calle Eliza Ortigosa 7, Torrox, Málaga

Property description

The property is located in a sought after area between Torrox and Frigiliana, only 10 minutes from Torrox village, 15 minutes from the motorway and less than 20 minutes to the coast. Easy access via a short concrete road from the main road.

Exterior

On a generous plot of land of 5,514 m² is this unique property consisting of a main house, a guest house, a bodega and a separate studio apartment/casita. The Plot has several flat terraces and is surrounded by olive, almond, fig and citrus groves as well as a vegetable garden.

Large pool
Spacious parking & carport
Development potential – large area under the main house terrace that can be converted into extra storage room or parking spaces

Interior

Main house (2 floors)
Large hall
Living/dining room with fireplace and access to a large terrace
Large country kitchen with dining area and access to a patio
Office with access to a glazed winter garden
Guest toilet
3 bedrooms upstairs
Master bedroom with en-suite bathroom, sauna, jacuzzi and terrace with fantastic views

Guesthouse (Casa Vieja)
Large bright yoga studio with smart ceiling light design
Open floor plan with kitchen, living room and pond view
3 bedrooms & 2 bathrooms

Guest Studio/Casita
Separate unit near the entrance, with private terrace
Double room, bathroom, kitchenette and rustic details

Other functions

Solar Panels for hot water
4 fireplaces
Partially double-glazed windows
Internet
Wine cellar/bodega
Prepared for central heating in the main building

See also: Fantastic building in the central village Frigiliana.

B&B Frigiliana

Boutique hotel for sale in Nerja

listing below is a small hotel on Costa del Sol's perhaps most lucrative market Nerja. The city leads the tourism league at provincial level in Spain in the wake of the crisis. The city also coped well through the previous crisis that started in 2008.

This is a newly built and beautiful boutique hotel (hostal) Nerja. The owners of the property are developers and they created the hotel, which opened in the fall of 2020. Material Choices are of the highest quality and the furnishings are very luxurious. Write to us for income calculations. The Price is 1.65 million. 10 rooms. info@spanskafastigheter.se

We also receive different types of guesthouses, course buildings and hotels of various sizes for sale off-market all over Costa del Sol, but also other parts of Andalusia such as Seville and Granada. Most of them for sale that is, not publicly. Admittedly, for some time now, a record number of commercial properties have been listed for sale on Spanish and international portals. However, most of these are hard-to-sell listing that have been for sale for a long time. The top picks are not made publicly. We cannot emphasize this enough. Many who, for various reasons, need to get rid of their life's work during the crisis do not want to advertise it via advertisements.

We have also, for a long time, in collaboration with lawyers and banks, looked for land as well as hotels and even land for resort for various foreign investment groups from both North America and Europe. We can also offer the development of " housing cooperative " (an old proven working model that is becoming increasingly common in Spain again as it is the only way to bring down prices and make new development competitive) etc. Read more about housing cooperative . No matter what type of project you intend to buy or develop in Spain, we have the expertise in-house to meet your needs. From developable land to construction companies and everything in between with executive-level bank contacts, architects and construction lawyers, etc.

We handle everything throughout the entire process.

This means, among other things, that:

• find an investment opportunity based on actual statistics
• legal assistance from local, experienced lawyers who know the market and ensure that all paperwork and licenses are in order (also applies to getting building permits locally for new commercial projects)
• We also collaborate at the highest management level at major Spanish banks regarding loans to buyers and bank guarantees for larger projects (everything from smaller hotels to resort )
• as well as other services/infrastructure that are necessary, such as a rental company with established clients (since 2012), own cleaning company (to keep costs down), professional photographer/drone, etc, etc.

Commercial properties for sale right now of particular interest

(Note: It is becoming increasingly common for us not to post existing projects publicly. Write to us directly and tell us what you are looking for. info@spanskafastigheter.se)

• In addition, we have collected several larger houses on the western Costa del Sol that are suitable for conversion into B&Bs or small hotels. There are also some individual existing businesses, such as B&Bs and small hotels for sale around Marbella, Estepona, Nueva Andalucia, etc.
• We have also recently scanned the market for commercial listing in growing Malaga. This city, which is the only real big city in the southernmost parts of Europe, has enormous potential for investors. Very flexible market, not so dependent on the economic cycle. There we have, among other things, a smaller apartment building, completely newly built, for sale.
• Write to info@spanskafastigheter.se for more information.

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Read our great article about investing in Spain.

Our main broker Anders Larsson He also participates in investment seminars all over the Costa del Sol in collaboration with La Caixa's Investment Bank. This way he constantly makes new contacts with Spanish and foreign players in various industries. This makes us the perfect choice for both smaller and larger investors looking for land, hotels and other commercial properties in Spain.

We have received land areas that have permits and are planned for hotels. It can take a long time to get permits on land areas that have not gone through the process, so it is clearly preferable to buy up earmarked areas.

Whether you want to buy a hotel, hostel, guesthouse, or a small bed & breakfast, he will help you find what you are looking for. We also have contact with several brokers who broker bars, larger cafeterias and small cafes in attractive areas, as well as business premises, office buildings, etc.

Many of you may also be looking for larger properties in the countryside, old monasteries, farmhouses and so on that can be converted for commercial use. This can often be a good deal if you have the energy and time, so do not hesitate to get in touch with your specific requirements if you are interested in investing in Spain, such as the attractive areas Andalusia or Costa Blanca.

For larger purchases, such as a 100-bed hotel, more detailed information is needed from the buyer as a document must be prepared for banks, financial advisors, etc. Most reputable brokers require a fee of at least 0.3% of the estimated investment cost for a market study and product presentation of larger hotels. This fee is then deducted from the final the price .

It is also possible to lease many of the commercial listing we offer. However, we cannot guarantee that all property owners will agree to this.

About borrowing for a commercial property 
Answer [edited for clarity] from a bank to a client with around a million in equity, who wants to buy a small hostel or similar. Since you are not allowed to borrow more than 50% as an entrepreneur, and the repayment period is 15 years for companies, the client wondered if it would be possible to buy privately.

"I don't see any possibility of financing this as a private holiday home, as it is a functioning hostel and business and the valuation will be presented as such. It would be different if you bought a unit, such as a villa or farm, and then subsequently started a b&b business or similar. But this deal that you have explained is a business investment, where in my opinion you should make the purchase via a Spanish company, or buy the existing company and take over the business. That way you could apply for financing with funds from BEI and get down to an acceptable interest rate. However, you should consult with an accountant before proceeding.

I understand the problem with 15 years of amortization, which affects your cash flow, but that is the maximum period in Spanish banks for business loans.

Guidelines for financing [existing] hotels/hostels that you can base your calculations on:

– It is possible to apply for 1-2 years of amortization-free years.
– Maximum financing of the project is 70%, study is done individually and percentage is determined.
– Interest depends on the customer and the project, and as previously mentioned, the company terms are significantly higher and the interest rate compared to private financing is usually 6-7%, but it is possible to apply for funds through the BEI (Banco Europeo de Inversiones) which supports small and medium-sized companies, and then the interest rate can be around 3.5%.

We will not be posting many examples of commercial listing on the page, but instead we ask you to contact us with an expression of interest info@spanskafastigheter.se. Please leave your phone number and Anders will call you back. He prefers to make the initial contact by phone as this saves time for all parties, and this applies especially to larger inquiries. His phone number is 0034648163895.

Our article about luxury house and luxury apartments all over Spain

Read about our other range of homes in Spain