The Spanish hotel industry is experiencing robust growth, with new data from the latest Hotel Sector Barometer—jointly published by STR and Cushman & Wakefield—revealing that the average daily rate (ADR) for Spanish hotels has soared by 5.5% year-on-year, hitting €170 for the third quarter of 2024. This upward trend far outpaces similar figures across broader Europe, where the average increase stands at just 1.2%.
Revenue and Occupancy on the Rise
The report highlights that revenue per available room (RevPAR) is the standout metric this quarter, jumping 6.3% to reach €129.9. Occupancy also edged upward by 0.7 percentage points to 76.4%. These figures demonstrate sustained demand in Spain’s hotel sector, with experts suggesting that while occupancy rates are nearing their ceiling, room prices could still climb due to ongoing demand from both domestic and international travelers.
Spain Outperforming the Rest of Europe
When compared to the continent, Spain’s performance is even more impressive. The 5.5% jump in ADR and 6.3% rise in RevPAR are notably higher than those logged across Southern Europe, which saw respective gains of 3.9% and 4.2%. This places Spain among the leading hotel markets for growth and returns in the region.
Which Cities Are Leading the Charge?
Destinations such as Marbella are setting the pace, with ADR increasing by a remarkable 11.9%. Zaragoza (9.7%) and the Balearic Islands (9.1%) also posted substantial price hikes. Notably, Marbella holds the record for Spain’s most expensive hotel stays, with an average rate of €388.60 per night, followed by the Balearic Islands (€234.70) and Barcelona (€193.50).
On the more budget-friendly end, Zaragoza (€79.40), Córdoba (€106.40), and Benidorm (€110) offer the cheapest hotel rates across the country.
Standouts in Occupancy and Revenue
Malaga stood out with an impressive average occupancy rate of 83.3%, despite a slight dip this year. Alicante (83.1%) and the Canary Islands (81.6%) also posted strong numbers. Zaragoza saw the largest occupancy jump, rising by 4 percentage points to reach nearly 78%.
Significant RevPAR surges were reported in Zaragoza (+14.1%), Marbella (+13.5%), and the Balearic Islands (+11.5%), which now also top the revenue charts: Marbella (€273.90), Balearic Islands (€172.10), and Barcelona (€153.50) take the lead, whereas Zaragoza, Cordoba, and Benidorm have the lowest revenue per available room.
Regional Challenges and Exceptions
Not all cities are reaping the benefits of the sector’s growth. Barcelona’s figures remain relatively flat, with less than 1% movement across key indicators. Valencia saw a sharp occupancy dip of 3.8 percentage points and a 5.5% drop in RevPAR, while Malaga and Cordoba both experienced minor declines.
Outlook: Room Prices Still Have Momentum
Analysts at STR and Cushman & Wakefield believe Spain’s hotel market still has room for price growth, thanks to strong demand, even if further gains in occupancy may be marginal. This continued momentum cements Spain’s position as one of Europe’s most attractive destinations for both travel enthusiasts and hotel investors.
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