The public management of the Sierra Nevada ski resort, in charge of the Junta of Andalusia, has historically seen its adequate market positioning slowed down, in contrast to Baqueira Beret. However, in recent years we have been witnessing an evident change in trend and a boom in activity in the high-end hotel segment in Sierra Nevada, led by private initiative.
Destination competitive advantage
Sierra Nevada offers 3 differentiating characteristics that consolidate its attractiveness for the investment market in high-end hotels:
- Higher altitude: It is one of the highest stations in Europe, ensuring quality snow throughout the season.
- Excellent connectivity: Sierra Nevada is one of the best-connected snow destinations in Europe, with proximity to an international airport and high-speed rail connection. It is also the closest ski resort to the beach in all of Europe.
- Stable season: The data on the duration of the snow season for the last 15 years do not allow us to interpret any significant variation in this parameter. This trend is being reinforced in the low season by the growing activity of the resort's High Performance Sports Center.
PHG Source
Market dynamics and key players
The transformation towards luxury in Sierra Nevada is being led by high-impact private projects:
Luxury Hotel Partners, known for its success with fully consolidated luxury products such as Marbella Club Hotel · Golf Resort & Spa and Puente Romano Beach Resort, has redoubled its commitment to the destination, complementing luxury resorts with snow, in projects such as :
- The Lodge Ski & Spa, a benchmark for high mountain luxury in Spain.
- Hotel Maribeloriented towards the premium segment.
- The renewal of GHM Monachil towards the high-end segment.
- A fourth strategic acquisition, with the objective of repositioning new assets towards higher segments.
In addition, there are multiple opportunities in Sierra Nevada to reposition other hotel assets towards the premium segment, which expands the investment horizon in the area even further.
On the other hand, Cetursa Sierra Nevada SA, owner of the resort, is also betting on luxury with two new high-end establishments, one in the 5-star category and another in the 4-star superior category. This new offer in the premium segment in Sierra Nevada is added to existing establishments such as Arttysur Lux Village (composed of 2 luxury hotels and 15 residences) and the Vincci Selection Rumykkiya.
Finally, Granada, just 38 km from the station, has also experienced a shift towards the luxury segment with conversions of properties to 5-star hotels such as the former headquarters of Caja Granada, the SEDA CLUB HOTEL by Hidden Away Hotels, the conversion of the Gran Vía Palace, the conversion of the Palacio de los Condes de Castillejo, and the pending entry of Four Seasons Hotels and Resorts in the destination, which will end up consolidating this double trend of complementary high-end products high, urban and snow.
Value journey
Sierra Nevada is, therefore, emerging as a clear success story of destination repositioning towards the premium segment, which presents evident value generation opportunities for hotel investors who want to develop a complementary product to the cultural tourism of Granada and/or the Costa del Sol luxury resort concept.
