Sí puede: el yield prime del 5,0% en Madrid/Barcelona es un cap rate en mano desde el día uno, mientras el 9% value-add es un objetivo sobre coste estabilizado que exige CAPEX y ejecución. En la cascada de ejemplo, el prime queda en 4,9% real y el value-add en 5,7%, una prima de solo 80 puntos básicos tras años de riesgo de obra y comercialización. Si el plan de reposicionamiento falla, el value-add cae por debajo del prime.
The number that's selling an announcement isn't the return you get.
When a broker teaches you a hotel "to 9%" and another offers a prime asset "to 5%," the new investor's instinctive reaction is clear: the 9% rents more. That's most often the wrong conclusion. Those two numbers aren't comparable because they don't measure the same. The 5% Prime is a Cap be by hand: what you have been charging from day one about a cash flow that the market considers to be very secure. The 9% value-add is a Iield target on stabilized cost: what Wait To be charged within two or three years after reforming, re-activalizing and stabilizing the employment if everything goes as planned.
The Spanish hotel prire yield is situated around 5,0% in Madrid and Barcelona and 6,0% on the islandswith a low adjustment of some 25 basic points in the year for high demand for investment (Fuente: CBRE Figures Q4 2025). That same appetite - hotel investment marked 4.275 M €at 2025, second best historic record (Source: Colliers, 2025)- That's why the prime prices are compressed. A lot of capital chasing secure flow pushes the jields down. The opposite of value add, where the highest ield is precisely the premium that the market requires for taking enforcement risk.
What exactly is Cap rate (without jargon)
The cap rate, prima yield or capitalisation rate is a simple ratio:
| Concept | Definition |
|---|---|
| Cap rate | A year's stabilized NOI and an asset purchase price |
| NOI | Net Operating Income: income − Operating expenditure (before debt and corporate tax) |
| Cap low | The market pays a great deal for every euro of NOI → asset perceived as secure |
| Cap be high | The market pays little for every euro of NOI → asset perceived as risked or worse managed |
The mental trap is to read a high chap rate as "more profitable." A high cap actually indicates that the market lacks risk: secondary location, unstable NOI, dependent on a single channel, regulatory risk or need for CAMEX. The figure ratio isn't the profitability: the market's price puts at risk from that cash flow. That's why comparing a 5% prime with a 9% valuation-add without risk-setting means comparing a fixed term notebook with a work project.
The Revpar commands more than the cap
The figure lays down the price. RevpAR (available room entry) and employment determine if NOI is real and sustainable. And here secondary destinations don't always lose. At 2025 Revpar's leadership by community was:
| ACABQ / destination | RevpAR 2025 | Leader occupation |
|---|---|---|
| Balearic Islands | 129,1 € (+9%) | — |
| Canary Islands | 120 € (+5,5%) | 81,5% |
| Málaga | — | 82,4% (national leader) |
| Alicante | — | 80,7% |
Source: Revpar and occupation by CAA - INE, 2025 (via Hostelltur), national mean 89,7 € census. The sample STR / Cushman & Wakefield, 2025 puts RevpAR España at 125,4 € (+ 5,5%): it's a different universe (sample of premium hotels vs. INC), not a contradiction.
The reading for the capital assign is direct: a ratio chap of 6% on an island with RevpAR of 129 € and structural nonresident demand can be more defensive That a 5% in a town with an active leave moratorium. The announcement number doesn't get that. Revpar did. When we compare assets, the comparable jield is the Yield adjusted by income riskDon't get naked.
Prime vs valore-add: an honest comparison
Each strategy has a risk profile, a horizon and a type of investor. No better: there's one that fits your capital costs.
| Variable | Yield prime (~ 5-6%) | Value-add (~8-10% objetivo) |
|---|---|---|
| Type of number | Cap put your face up day one | Yield on stabilized cost (future) |
| Initial cash flow | Stable from signature | Depressed during work |
| Performance risk | Low | High (CIPEX, marketing) |
| Appalancation that supports | High and stable (LTV 55-65%) | Minor during construction phase |
| Potential upside | Limited, already stabilized | Stop if plan is run |
| Inverter profile | Housing / family office | Opportunity with patient equity |
| Where you gain or lose | At the entrance price | Management and implementation |
LTV senior 55-65%, plazo 5-7 años — Hospitality Net, Q3 2025. Rangos value-add 8-10% sobre coste: estimación sectorial. Debt yield objetivo ~8-13%: estimación sectorial (Largo Capital).
The key line's the last. At first you gain or lose at Input price: if you pay an appropriate number, the asset works alone. At Value-add gain or lose at and performance: the 9% jield only exists if the dedicated NOI divide is closed by the managing team. Without a professional operation, the value-add isn't value-add: es ValueA cheap asset for a reason that you end up paying.
The pre-sign euro cascade: the brochure 9% against the actual 5%
Here's the exercise that no announcement shows you. We take two boutique hotels from 30 rooms with the same purchase budget and we strip the raw jield up to the actual NOI in hand. The figures are illustrative but the method we apply to each analysis.
| Annual cascade | Prime (town, day one) | Value |
|---|---|---|
| Total investment (purchase + CAPEX) | 6.000.000 € | 6.000.000 € |
| Gross income housing | 1.080.000 € | 1.260.000 € |
| − Channel Commission (OTA 15-18% vs directly) | −151.000 € | −189.000 € |
| − Operating costs (personnel, supplies, F & B) | −486.000 € | −540.000 € |
| − Cleaning and maintenance | −54.000 € | −63.000 € |
| − IBI, fees and insurance | −43.000 € | −48.000 € |
| − Management / management fee | −27.000 € | −31.500 € |
| − Reserve CAPEX / FF & E and gaps | −27.000 € | −47.000 € |
| = actual NOI in hand | 292.000 € | 341.500 € |
| actual net Cap rate / ield | ≈ 4,9% | ≈ 5,7% |
Examples (model figures and market data). Loan GOP reference hotel ~ 41% - HotStat (sector estimate). Mil of channels and commission: OTA 15-18% vs. direct channel, internal data Bliss.
Two uncomfortable readings. The first: the value -add "of 9%" remains at 5,7% real stabilized Once you figure everything out and that assuming that the plan is met. The second: the distance between the 5,7% of the Valuation-add and the 4,9% of the Prime is just 80 basic points, a close bonus for years of work risk, marketing and uncertain employment. Value-add's only worth it when that bonus's high and enforcement's reliable. When the bonus tightens up, the first in hand wins for safety.
The other finding of the cascade: Channel Commission That's about the few lines a good manager really moves. Each point you get back from OTA goes straight to NOI. Bliss's own direct channel, Tudesvío, opera al 10% de comisión frente al 15-18% de las OTAs (isn't free but low toll): about 1.260.000 €'s entrance, move some of the OTA's mix directly free tens of thousands of NOI's euro a year without touching RevpAR.
Leverage punishes value - add before rewarded
The debt amplifies the return on own funds as soon as the cap outweighs the cost of the debt and destroys it as soon as they do. With high LTV of 55-65% in prime assets and an target yield debt in the 8-13% environment (sector estimate, Long Capital, LTV - Hospitality Net, Q3 2025)The prime supports stable leverage from the first day as its NOI has been established. Value -add no: during the construction phase the NOI is depressed, the debt yield isn't met and the bank lends less or more expensive. Value-add requires patient equity That holds till the asset surrender. Whoever pounding a value- add as if it's prime gets out of box at bad times.
How to choose by your profile
1. Define your capital cost
If your money requires preservation and stable rent, the first to the 5-6% at hand will fulfill. If you seek to create value and accept volatility, the value -add makes sense - only if the jield bonus is high.
2. Adjust the yield by risk, not by number
Cross the cap with RevpAR (Balearic Islands 129,1 €, Canary Islands 120 € at 2025), care and regulatory risk by CAA. The comparable jield is the income risk adjusted.
3. Requires pre-sign cascade
From the nominal figure to the actual NOI in hand, discounting channel, management, CAPEX, gaps and taxes. If the salesman doesn't give them to you, get them before you sign them.
4. Mide who runs the value-add
The target 9% only exists if there is a manager that close the NOI divide. Without a professional operation, Value-add becomes Value-trap. Management's the variable, not the asset.
Where Bliss fits into this decision
The macro (BRE, Colliers, STR) give you the cap rate prime and revpar, but do not lower to the operative that converts a value-add into actual NOI. Proponents selling "+ 10%" do not teach you cascade. Bliss occupies that exact hole: we translate the institutional sign into the figure you're gonna get.
We back up with information from our own portfolio: 87% medium occupancy and better income versus market average in the properties we manage (internal Bliss data, own social test, non market data). That employment and income delta is exactly what separates a value - add that income from what remains in prospectus. In repositioning projects we apply a mixed model ground + distribution that captures the upside from the owner, instead of a fixed fee that lays a roof to your profitability when the asset takes off.
To deepen: check actual hotel performance figures in Spain 2026how The figure figure for NOI of a tourist asset, as appropriate blow up rooms opposite to buy the whole hoteland our page of boutique hotels e tourism investment To see the complete model.
FAQ
What's hotel cap?
El cap rate (tasa de capitalización o prime yield) es el cociente entre el NOI estabilizado de un año y el precio de compra del activo. Mide la rentabilidad no apalancada de la inversión. En el hotelero prime español está en torno al 5,0% en Madrid y Barcelona y al 6,0% en las islas, con un ajuste a la baja de unos 25 puntos básicos en el año (CBRE Figures Q4 2025). Un cap rate bajo no significa mala inversión: significa que el mercado considera ese flujo de caja muy seguro y está dispuesto a pagar más por cada euro de NOI.
Prime or Value-add for my profile?
It depends on your capital costs and your tolerance of the risk of enforcement. The prime fits with capital or family office that prioritizes preservation and stable income to 5-6%. The value-add fits with an investor who wants to create value through repositioning or better management and accepts work risk, marketing and stabilization curve to reach an Iield about cost of 8-10% (sector estimate). The practice rule: Value-add only rent more if the managing team close the promised NOI divide. Without a professional operation, value-add usually remains at value-trap.
How do you compare the jield between cities?
It's not enough to look at the nominal cap rate: we have to cross with Revpar, employment and regulatory risk. Baleares leads the Revpar by CCAA with 129,1 € and Canarias following with 120 € (INE, 2025, via Hostelltur) while Málaga leads with 82,4%. A 6% cap at an island with 129 € RevpAR and non-resident demand can be more defensive than a 5% at a licensed town. The comparable yield is the risk-adjusted yield, not the announcement number.
Why can a primer jield of 5% rent more than an add-value of 9%?
Because the 9% is an objective yield about stabilized cost, not a guaranteed return of day one. Between purchase and stabilization there are CAPEX, months of work with closed or half-machine asset, risk of overrun and employment curve. If the plan goes bad, the actual value-add falls under the prime and with far more volatility. The 5% prima is a flow in hand from the first day and the 9% is a promise that depends on the performance.
What role does leverage play in the jield?
The leverage amplifies the return on own funds as soon as the cap surpasses the cost of the debt and destroys them as soon as they do. With high LTV of 55-65% in prime assets (Hospitality Net, Q3 2025) and an target yield debt in the 8-13% environment (sectorally estimated, Long Capital), the value-add holds less debt during the construction phase as its NOI is still unstabilized. The prime supports more stable leverage and value-add requires patient equity until the asset yields.
What risks does a value-add seem cheap?
Cuatro principalmente: riesgo de CAPEX (sobrecoste de obra), riesgo de comercialización (que la demanda no aparezca al precio previsto), riesgo regulatorio (que la licencia o el uso urbanístico bloqueen la explotación) y riesgo de gestión (que el operador no logre el RevPAR del business plan). El precio de entrada bajo descuenta esos riesgos; no es un regalo. La due diligence pre-firma es la que separa una oportunidad real de un activo que está barato por una razón.
How does Bliss help to compare yield prime and value-add?
Bliss builds the pre-signing euro cascade of both scenarios: from nominal figure to actual NOI in hand, with the discount of channel commissions, management, gaps, CAPEX and taxes with each market figure anchored to source (CBER, Colliers, STR, INE) and the actual performance of our portfolio. At value-add we also model the yield about stabilized cost and the risk of implementation. Thus the inverter compares pears with pears, not a 5% by hand against a prospectus 9%.
Compare your prime and your value with the same stick
We ride you the cascade of euro pre-signature of each operation - from nominal figure to actual NOI in hand - with each figure attached to source and to the actual performance of our portfolio. No round promise: numbers.