Spain | Consolidating its Position as One of the Most Profitable and Dynamic Hotel Markets in Europe

Spain is consolidating its position as a leading hotel market, experiencing substantial investment and robust performance, this is driven by strong tourism numbers, making it an attractive destination for both domestic and international capital.  Investment is well – balanced between urban and resort destinations, tourism sector is booming with record numbers of visitors, further boosting investor confidence and the overall market.

During the first half of 2025, the country consolidated itself as one of the most profitable and dynamic hotel markets in Europe, according to the Hotel Sector Barometer by STR, leading provider of performances benchmarking and comparative analytics to the hotel industry, based in Hendersonville, Tennessee, U.S. and Cushman & Wakefield, American global commercial real estate services firm,  headquartered in Chicago, Illinois.

The average price per night (ADR) reached €158.2, with a year - on year growth of 6.5%, while revenue per available room (RevPAR) rose by 6.9%, both above the European average.

In terms of occupancy, the Canary Islands displaced Malaga as the destination with the highest hotel demand, registering 80.1%. The Canary Islands with Marbella and Zaragoza stood out as the destinations with the highest growth in occupancy.

Cordoba and Valencia experienced significant drops while the two largest cities of the country Madrid and Barcelona remained stable, hovering around 76.6%.

The price per night varied widely between destinations, with Marbella being the most expensive city with an ADR of €312.4, followed by Barcelona, €195.5 and Madrid, €179.5.

In percentage terms, data show the increases in Granada, Mallorca and Zaragoza while Valencia was the only one to register a decrease.

In terms of RevPAR, Marbella once again led with €204.4, registering an increase orf 20.4%, followed by Zaragoza, +15.8%, the Balearic Islands, +14.3% and Granada, +13.3%. In contrast, Cordoba, Malaga and Valencia saw setbacks, although less than 7%

Data provided, highlight that the strength of luxury hotels and international demand were ky to these results.

Cushman & Wakefield anticipates that the upward trend will continue for the rest of 2025, driven by a solid holiday season and a high level of pre - bookings. With a performance well above the European average,  Spain positions itself as a key destination in the international hotel industry.

Link
https://tres60.travel/espana-lidera-la-rentabilidad-hotelera-en-europa/

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