Research Report Marbella Aninver Hospitality Advisors Hotel Market

November 2015 Review

Market Summary

Marbella is one of the leading leisure tourism destinations in : its average daily rate (125.9 € per night in 2014) is the highest among leisure destinations (excluding urban) and is ffth in RevPAR (76.5 € in 2014). International tourists accounted for 77% of hotel nights sold in 2014. Hotel supply has decreased 4% in the last fve years and current new supply is quite limited and uncertain. Given the strong levels of international demand we foresee very good results for operators in the short term.

Visitors and overnights

Evolution of visitors and overnights. 2005-E2015 Relevance of international tourists. 2005-E2015

Overnights (000) Overnights Visitors X Avg stay (days) 2,862 2,879 4.000.000 Visitors (000) 2,862,224 2,879,166 3.000.000 62% 1,777 2,159,290 +25% 2,225 77% 2.000.000 3.8 4.2 758 686 3.8 1.000.000 55% 415 +11% 67% 1,086 458 654 758,205 574,860 686,056 344 228 0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 E2015 2005 E2015 2005 E2015 Spanish Nationals International In 2015, Marbella will once again reach the number of overnights The number of visitors today still falls below the fgures seen in sold in 2005. The last decade has been tough, especially due to 2005, however the number of international visitors has increased cases of corruption and the radical decrease in the number of 11% over the past decade. International tourist overnights have Spanish tourists. Despite that, Marbella has been growing increased much more signifcantly (25%), representing almost four strongly since 2013, with a signifcant extension of the average out of fve hotel nights sold in Marbella today. stay. Aninver projects a growth of 13% for the number of visitors and 12% for overnights in 2015 vs. 2014. Source: Aninver’s analysis of data from INE. Aninver’s forecast for 2015

Demand vs. Supply

Evolution of overnights, hotel beds and occupancy 2009-2014. Basis 100 = 2009 “The weight of international tourists in overnights has increased from 62% up to 77% in the last 130 123 decade, transforming Marbella into a much more 120 119 110 international destination. The reduction in hotel 100 100 supply since 2009 (-4%) has allowed existing hotels 96 90 to signifcantly increase their occupancy (+23% in 2009 2010 2011 2012 2013 2014 Overnights No. Hotel beds Avg Occupancy 2009-E2015)”.

Source: Aninver’s analysis of data from INE

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Research Report November 2015 Aninver Hospitality Advisors

Proftability – Top Spanish Leisure destinations 2014 Figures. 3 to 5 star hotels only

ADR (€) Occupancy (%) RevPar (€) Marbella (Malaga) 125.9 Yaiza () 88.7 Eivissa (Ibiza) 84.1 Sitges () 113.2 Arona () 87.4 Adeje (Tenerife) 80.6 Chiclana de la Frontera (Cadiz) 108.4 Adeje (Tenerife) 86.2 San Bartolomé de Tirajana (Las Palmas) 79.4 Tarifa (Cadiz) 108.2 Teguise (Lanzarote) 86.0 Sant Josep de Sa Talaia (Ibiza) 78.0 Eivissa (Ibiza) 107.5 Tías (Lanzarote) 85.5 Marbella (Malaga) 76.5 Sant Josep de Sa Talaia (Ibiza) 102.9 Muro (Mallorca) 84.4 La Oliva (Fuerteventura) 75.5 San Bartolomé de Tirajana (Las Palmas) 97.4 Llucmajor (Mallorca) 83.5 Arona (Tenerife) 74.6 Estepona (Malaga) 97.3 Mogán (Las Palmas) 82.8 Chiclana de la Frontera (Cadiz) 74.5 Conil de la Frontera (Cadiz) 95.8 Santanyi (Mallorca) 82.7 Muro (Mallorca) 74.0 Santa Eulalia des Rius (Ibiza) 94.3 La Oliva (Fuerteventura) 82.6 Santa Eulalia des Rius (Ibiza) 71.9

Source: Aninver’s analysis of data from Exceltur Current hotel supply

Current hotel supply in Marbella consists of 79 hotels and 16,578 hotel beds (in low-season the number of open hotels falls to 59 with approx. 9,200 hotel beds). Over the past few years, the number of hotel beds has decreased (-4% in the period 2009-14). Main hotel chains with presence in the city are: Playa Senator (3 hotels / 656 hotel rooms), Hoteles Globales (2/563), Fuerte Hoteles (2/489), Melia (2/422), H10 Hotels (1/400), Roc Hotels (1/332 – new opening), Bluebay (1/315) and Marriott (1/288).

Tryp Alameda 4* Salles Malaga Centrum 4* San Cristobal 3* Gran Melia Don Pepe 5* Monarque El Rodeo 3* Ibis Malaga 2* Tribuna Malaga 3* Suite NovotelSenator Malaga Marbella 4* 4* Hotel del Vincci Posada del Patio 5* La Quinta 5* Golf NH Malaga 4* Barcelo Malaga 4* NH Marbella 4* Amare 4*Room Mate Larios 4* Silken Puerta Malaga 4* Alanda 4* Atarazanas 3* Palacio del Sol 3* Guadalmedina 4* Marbella Club 5* H10 Andalucia Plaza 4* Marbella Petit Palace Plaza 4* Puente Romano 5* Los Monteros 5* Alanda Club Don CurroPrincesa 3* Playa Bluebay Banus 4* Iberostar Coral Beach 4* Gallery Molina Larios 4* Fuerte Marbella 4* Vincci Estrella del Mar 5* Sisu Boutique 5* Melia MarbellaRoom Mate Banus Lola 4* 4* AC Malaga Palacio 4* El Faro 3* Don Carlos 5* NH San PYR Marbella Pedro 3* Park Plaza Suites Oh Marbella Inn 3* Marriott Marbella Beach 4* Guadalpin Banus 5* B a r c e l o Globales Pueblo Andaluz 3* Marbella 4* Globales Cortijo Blanco 3* Guadalmina 5*

Source: Aninver’s analysis Projects

Hotel projects and potential locations “New supply is very limited with a high degree of uncertainty on new and potential projects, especially No. Cate- Project/locaon Hotel operator Rooms gory given the constant changes in urban planning Ex Don Miguel Magna H&R 373 5*GL regulations. The refurbishment of existing hotels is

La Bajadilla Bluebay 200 5*GL proving to be a safer investment and current levels of

Guadalmina* Unknown 178 5* hotel transactions will surely foster new operator

Roc Las Chapas* Roc Hotels 330 4* changes and major refurbishments. The development of the “Golden Triangle” (Marbella-Estepona-Benahavis) is Ex Incosol Potential project ≈200 n/a presenting new development opportunities”. Guadalpin Banus land Potential project Unk. n/a * Refurbishment Source: Aninver’s analysis

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Research Report November 2015 Aninver Hospitality Advisors

Marbella as a luxury tourism brand

There are 16 5* and 5*GL hotels in the Marbella area Marbella Club

Marbella has a long tradition of Melia La Guadalpin being a luxury tourism Quinta Vincci Estrella Villa del Mar destination on a global scale. Padierna H The so-called “Golden Triangle” H H Guadalpin area, comprised of the Banus Marbella, Estepona and H H H H H H H H H Marbella Benahavis municipalities, hosts H H H 16 5-star and 5-star GL (“gran H lujo”) hotels. Assets such as Finca Cortesin or Villa Padierna, although not located in Finca Elba Don Carlos Cortesín Marbella itself, show in practice Senator Puente Kempinski Los Monteros how the “Marbella” brand is Banus Romano expanding to cover a larger Healthouse Melia Marbella Melia Don Pepe territory. Las Dunas Banus

Key project: new Magna Palace Hotel

In 2012, Foundation Magna Invest, based in Luxembourg, acquired the 550-room 5-star Don Miguel resort in Marbella. The group is working on the refurbishment of the asset which will open its doors as “Magna Palace 5*GL”. The new hotel will have 300 deluxe rooms and 73 sea-view suites. Several restaurants, a business center, a 5,000 sqm spa, a shopping center and a new 62,000 sqm aquatic park will complete the range of services provided by the new Source: Magna Hotels&Resorts website complex. Construction work has yet to begin.

About us

¥ Aninver Hospitality Advisors is a boutique advisory frm working for institutional investors, hotel chains and independent hotel owners on multiple kinds of consulting assignments: strategy, international expansion/business development, asset and project management, special projects and asset divestments. ¥ We are part of Aninver InfraPPP Partners, a business advisory and market intelligence group based in Malaga but working globally for relevant public and private clients. ¥ If you are interested in discussing this market report or any potential business opportunity please contact our team.

Contacts

Jose de la Maza Alvaro de la Maza Marina Ruiz OFFICE Managing Partner Partner Business Analyst C/ Puerto 14 2-5 Malaga [email protected] [email protected] [email protected] 29016 (Spain) +34 639 90 63 48 +34 661 24 97 63 [email protected] +34 951 76 79 73

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