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Cushman & Wakefield - Hotel Barometer Third Quarter 2022

Bruno Hallé • 26/10/2022

Despite average occupancy (68.3%) running at eight percentage points below the figure for 2019 (76.3%), both ADR (average daily rates) and RevPAR (average price per available room) have matched or exceeded the levels seen prior to the pandemic. 

Spanish hotels achieved a RevPAR (average price per available room) of €92.50 between January and September, slightly higher than the 92 Euro for 2019 and far above the €44.20 of a 2021 still hobbled by the impact of the pandemic. 


With respect to destinations, Marbella continues to lead the ranking in terms of RevPAR and ADR, at €204.50 and €311.90 respectively. In RevPAR terms it is followed by the Balearic islands with €124 and Barcelona with €112.90. The city with the highest hotel occupancy during the first nine months of the year was Malaga, at 79.7%, closely followed by Valencia with 75.4%  and Alicante, with 75%. 

The Hotel Sector Barometer, jointly produced by STR Cushman & Wakefield, points to a clear recovery in operating revenue at the close of the third quarter, with levels exceeding those of 2019 in terms of indicators such as the ADR (average daily room rate) and RevPAR (average price per available room), along with an improvement in occupancy that is yet to reach the levels of 2019. 

Average occupancy for Spanish hotels stood at 68.3% during the first three quarters, representing an improvement of 70.8% on the previous year. This is, however, still eight percentage points below the figure achieved in 2019 (76.3%). The improved occupancy has also enabled significant growth in average rates, thus leading to an improvement in revenue per available room. RevPAR for Spain as a whole reached €92.50 (+109% in comparison with the preceding year), whereas the ADR stood at €135.60 (+22.5% compared with 2021 and +5.5% on the 2019 figure). 

The recovery in tourism is a reality on the Costa del Sol, with hotel occupancy in Malaga of 79.7%. Marbella achieved a figure of 65.6%. The podium of destinations accomplishing the highest occupancy in Spain as a whole is rounded off by Valencia and Alicante, with figures of 75.4% and 75% respectively.  Turning to the major cities, Madrid garnered 64.7% whilst the figure for Barcelona rose to 72.1%. Although both are some 10 percentage points adrift from occupancy levels in 2019, they have almost doubled the figures seen in 2021.

Hotel occupancy in Spain saw growth of some 70.8% on the figures for 2021, whilst remaining 8 percentage points below the percentage achieved in 2019 (76.3%).  

In the view of César Escribano, STR’s Country Manager for Spain and Portugal, “the third quarter, which includes the summer season, shows that the resurgence of the market is now a fact and that the return of mobility within the main investment markets has also driven activity in holiday destinations. In order to continue growing, the coming months must include the recovery of Asian markets and an improvement in the geopolitical situation”.   

With respect to this recovery, Albert Grau, Partner and Co-head of Cushman & Wakefield Hospitality Spain, feels that “hotels have been able to respond to the rise in demand despite a number of hurdles such as energy prices and human resource management. The efforts made to maintain average rates during the darkest months of the pandemic were crucial and now it is necessary to face up to the challenge of profitability, under threat from increasing costs from every angle”. 

Malaga tops the Spanish ranking with occupancy close to 80% 

The strength of demand has also enabled a recovery in room rates in the hotel industry, even surpassing the figures for 2019. The ADR for the first nine months of the year was €135.60, compared to €110.70 last year and €120.60 in 2019.  Despite the increase in ADR, other indicators highlight the fact that operating margins are becoming tighter. This means that it is necessary to seek out alternatives in terms of management if inflation remains so high.  

Marbella is the destination with the highest ADR, reaching a figure of €311.90. It is followed by the Balearic Islands (€182.60), Barcelona (€156.70), the Canaries (€129.10) and Madrid (€128.70). In contrast, the cities with the lowest prices were Zaragoza (€65.70) and Granada (€85.80).  

In the opinion of Bruno HalléPartner and Co-head of Cushman & Wakefield Hospitality Spain “Pricing strategy is returning to normality following a highly unpredictable eighteen months. The summer surpassed everyone’s expectations and, in expectation of the definitive recovery of generating markets such as Asia and Latin America, we can look towards sustained growth in 2023”.  

The ADR amounted to €135.60 for Spain as a whole, some 22.5% higher than the figure for the same period in 2021  

RevPAR over these first nine months of the year grew by 109% in comparison with the same period in 2021 (from €44.20 to €92.50). RevPAR at the close of the third quarter of 2019 stood at €92. In terms of the ranking of cities and destinations, the best results were achieved by Marbella (€204.50), the Balearic Islands (€124) and Barcelona (€112.90). At 219.4%, the strongest increase this year has been recorded by Barcelona. The city has performed magnificently since Easter, substantially improving on the negative figures for the previous year weighed down by the lack of international tourism. For its part, with growth of 170% Madrid recorded the second highest increase, going from €30.80 in 2021 to €83.30 this year. 

Although Granada (€54.60), Córdoba (€58.10) and Zaragoza (€42.90) bring up the rear in terms of the RevPAR ranking over these first nine months, the levels are very similar to those of 2019.

 

The average rate per available room (RevPAR) grew to €92.50, fifty cents higher than the figure in 2019  

 

The Hotel Sector Barometer brings together data from 1,200 hotels and around 180,000 rooms on the Iberian Peninsula. The study is the product of an alliance between STR, a worldwide provider of benchmarking, analytics and market knowledge specialising in the hotel sector, and Cushman & Wakefield Spain, the world leader in real estate services.

 


 

MEDIA CONTACT

Jenny Pizarro
Jenny Pizarro

International Partner, Head of Business Development Services, Spain, Portugal & Italy • Barcelona

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