The consistency of demand has enabled growth in the ADR (average daily rate) to €135.8, some 10% over the figure for the first half of 2022 and some 20% greater than the same period in 2019. The revenue per available room (RevPAR) grew by 23%, from €77.3 in H1 2022 to €95.4 during the first six months this year. 2023’s RevPAR also exceeds that of 2019 by some 16.7%. Malaga is leading the occupancy ranking in Spain, reaching 81.8% during H1 2023, confirming its strengths as a top tourism destination. Regarding average rates, Marbella at €240.8 and Barcelona at €172.6 took the top two places during the first half of 2023. In terms of revenue per available room (RevPAR), Marbella (€153.1) and Barcelona (€130.9) are again at the top. However, the greatest growth was recorded by Granada, seeing an increase of 39% in comparison with 2022.
The indicators of the Hotel Sector Barometer, produced jointly by STR & Cushman & Wakefield, confirm the full recovery in hotel and tourism activity in Spain. This recovery was driven by a robust 20% growth of ADR, while occupancy reached 70.2%, just 3% below the level recorded in H1 2019.
In 2019, Spanish hotels achieved an average room rate of €112.8 during the first half of the year, whereas the figure for the same period this year stands at €135.8, amounting to a growth of some 20%. For its part, revenue per available room for the country stood at €81.7 in 2019, compared with the €95.4 achieved this year (growth of some 16%). Relative to 2022, ADR growth stands at 10% and RevPAR at 23%.
As already indicated in the previous editions of this Hotel Barometer, Malaga is not a seasonal tourism market anymore. It is the leading market in occupancy raking, with the average occupancy during the first six months of the year reaching 81.8%, a 10% increase compared to the same period in 2022. Also noteworthy has been the performance of Valencia, which took the second place with an occupancy of 78.3%, representing growth of some 11.6% on the previous year. At 75.9% and 71.6%, respectively, the cities of Barcelona and Madrid have recorded very healthy occupancy figures with the return of the business segment and international tourism. These figures for Barcelona and Madrid represent improvements on the previous year of 15.6% and 13.2% respectively.
Turning to the islands, with occupancy at 76.2%, the performance of the Canaries has been very strong, representing a growth of 12.7% on the figure for the same period in 2022. In anticipation of the summer season, the improvement has been somewhat more moderate with respect to the Balearics, with occupancy of 60.7% representing growth of 6.9% on the previous year.
According to César Escribano, Regional Manager Southern Europe at STR, “Spain is in the perfect place to close an excellent 2023 given that indicators up to June point towards an outstanding holiday season. The improvement in occupancy is widespread and there is still room for continued growth over the coming months”.
For his part, Albert Grau, Partner and Co-head of Cushman & Wakefield Hospitality Spain, considers that “the hotel sector in Spain is demonstrating a robust performance, with demand volumes being almost fully rebounded to 2019 levels. More importantly, we are seeing a very positive growth of average daily rates, underpinned by the strength of demand and inflation pressures ”.
As a result of being a key tourism destination with a strong luxury offering, Marbella once again takes the top spot with an average daily rate of €240.8. This is, however, some 3% lower than the figure for the previous year. It is followed by Barcelona which, at €172.6, has achieved growth of 18.4% on the previous year up to June, the highest percentage anywhere in Spain. This improvement may be attributed to the weight of international tourism, the recovery of this being confirmed in 2023. Madrid takes third spot on the podium with a figure of €146, representing growth of 13.2% on the previous year. This uptrend in prices could soften over the coming quarters in that the demand from a number of leading source markets shows signs of reaching a ceiling.
The overall average ADR for Spain during the first half of 2019 amounted to €112.8, compared with a figure for this year of €135.8, representing a growth of 20%. Every city and destination improved its performance this year, achieving all-time highs.
According to Bruno Hallé, Partner and Co-head of Cushman & Wakefield Hospitality Spain, “the hotel industry has managed to contain the impact of the pandemic in terms of price levels, enabling it to adjust upwards following a recovery in occupancy levels whilst responding to inflation that is also having an impact on operating margins”.
Marbella and Barcelona top the table in terms of ADR, with average daily rates of €240.8 and €172.6 respectively
Thanks to the strong increase in ADRs, revenue per available room (RevPAR) has also seen solid growth throughout Spain. This €95.4 sets a new record for the first six months for Spain as a whole and highlights the trend towards the full recovery of the sector. The cities leading the ranking in terms of revenue are Marbella (€153.1), Barcelona (€130.9), Malaga (€106.4) and Madrid (€104.5). The rise in occupancy and price increases have enabled hoteliers to grow RevPAR (revenue per available room).
The greatest increases in RevPAR were achieved by Granada from the €52.9 seen last year to the current €73.4 (38.8%), along with Barcelona, achieving growth of 36.8%. In contrast, revenue is rising more moderately, at 4.5% in Marbella and 8.7% in the Balearic Islands.
With RevPAR of €95.4, the data for January to June 2023 shows growth of some 16% on the figure for 2019 and 23.3% on that for 2022
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.
