• Accompanied by high occupancy levels. this price rise has boosted revenue per available room (RevPAR) to €109, representing 14.5% growth on the figure for the first six months of 2023. The destinations with the highest RevPAR figures were Marbella (€154), Barcelona (€146.80) and Madrid (€129.30).
• Average occupancy during the first half of the year increased by 3.6% in comparison with the same period last year, going from 70.1% to 72.6%. The destinations enjoying the highest occupancy rates were Malaga, Valencia, Alicante, the Canary Islands and Barcelona. Spain as a whole has now surpassed pre-pandemic occupancy levels.
In terms of destinations, with a figure of 82.6% Malaga led the ranking for occupancy over the first half of 2024. Marbella tops both the ADR (€248) and RevPAR (€154) tables. Madrid and Barcelona continue to show robust growth in terms of both average room rates and revenue. Barcelona now boasts the second highest average room rate at €189, up 10% on the first half of last year, whilst Madrid leads RevPAR growth with an increase 23%.
According to Elvira Arjona, Account Manager Spain at STR, “The first six months confirm the full recovery of the industry following the pandemic, even in terms of occupancy. The rise in ADR has driven double-digit growth in RevPAR. Having reached these levels, forecasts suggest that price rises may moderate over the second half of the year.
In the view of Albert Grau, Partner and Co-head of Cushman & Wakefield Hospitality Spain, "As demonstrated by its operating figures, Spain is a highly attractive destination which is consolidating its position as one of the leading investment markets in Europe. Strong business performance is also whetting the appetites of hotel asset investors, particularly for urban and holiday destinations with a mix of leisure and business, such as Malaga and Valencia or, obviously, Madrid and Barcelona.
Spain’s ADR surpassed €150 during the first six months of the year
Sleeping in Marbella between January and June this year cost, on average, €248, the highest price in the country. The corresponding average rate for Barcelona was €189 and, in Madrid, €169. For the country as a whole and thanks to strong demand, room rates have risen by 10.6% in comparison with the first half of last year. The highest percentage growth was seen in Madrid (16%), followed by Bilbao (+15.1%) and Malaga (+14.4%). Double-digit increases were also noted in the ADRs for Barcelona, the Canary Islands and Seville, among others. The slowest growth was seen in Granada (+4.6%) and Zaragoza (+6%).
In the opinion of Bruno Hallé, Partner and Co-head of Cushman & Wakefield Hospitality Spain “strong results over the first half of the year suggest that the third quarter, which includes the high summer season, could also prove very positive. The demand for Spain remains intact and in certain holiday destinations operating margins may continue to improve with price rises, though these will be more moderate".
Spanish hotel RevPAR grew by 14.5% between January and June
Improved occupancy and ADR figures have also boosted revenue per available room (RevPAR), with growth of 14.5% for Spain as a whole in comparison with the first half of 2023. The figure of €109 represents an all-time high for the first half of the year, possible thanks to very significant increases such as those of Madrid (+23%), Bilbao (+20.3%) and Seville (+18.2%).
The destinations witnessing the highest RevPAR growth are Marbella (€154), Barcelona (€146.80) and Madrid (€129.30). In contrast, revenues in Zaragoza (€54.60) and Granada (€75) are the most modest.
According to Albert Grau, Partner and Co-head of Cushman & Wakefield Hospitality Spain, “the RevPAR trend is highly positive in the sense that it is the best indicator for forecasting the profitability of the hotel industry, boosting confidence from an investment angle in the hotel asset class”.
The Hotel Sector Barometer brings together data from 1,200 hotels and around 150,000 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.
