Hotel occupancy rate exceeds 70% so far this year
The Hotel Sector Barometer prepared by STR and Cushman & Wakefield confirms that there is a “full recovery” of activity in Spain, with indicators “at historic highs”. Although occupancy is still behind pre-pandemic figures, the average daily rate and revenue per available room exceeded 2019.
Average hotel occupancy between January and September was 72.7%, 8.8% higher than last year (66.8%), but behind 2019 when it reached 76.3%. Malaga was the destination with the highest hotel occupancy during the 9 months analysed (83.5%), followed by Valencia (81.2%), Barcelona (78.4%), Canary Islands (77.4%) and Alicante (75.9%).
The Balearic Islands (68.7%) and Marbella (66.5%) were at the bottom in terms of occupancy, although in both cases they improved their 2022 levels by 4.7% and 2.7%, respectively.
Occupancy, ADR and RevPAR, how have they performed up to September?
“The attraction of the tourism product in Malaga and Valencia, with an increasingly consolidated leisure offer, has allowed them to lead occupancy in Spain. For their part, Madrid and Barcelona are up double digits thanks to the recovery of international and corporate tourism, which in 2022 was still in the activation phase”, explained César Escribano, Regional Manager Southern Europe at STR.
In the words of Bruno Hallé, partner and co-managing director of Cushman & Wakefield Hospitality in Spain, “the first months of the year have confirmed the expectation of a recovery in occupancy that we pointed to in 2022, reaching levels that we can describe as optimal in practically all destinations”.
“From now on, geostrategic uncertainty may affect this strength of demand, although it is too early to be able to gauge what the evolution may be,” remarked Hallé.
Marbella achieves the highest average hotel rate
The average daily rate (ADR) for Spanish hotels rose to €145.1 between January and September, which is 7% higher than last year and 20% above 2019.
Marbella, known for its luxury offerings, was the city with the highest average price between January and September: €298. A comparison with 2021 shows a 4% drop (311 euros) and an increase from the pre-pandemic 215 euros. The second destination was the Balearic Islands, with an ADR of 188 euros “thanks to the pull of the summer months”, achieving a very similar figure to last year and 31% higher than the 143.6 euros in 2019.
Occupancy, ADR and RevPAR, how have they performed until September?
Hotels in Marbella and the Balearic Islands achieve the highest average daily rate. Source: Cushman & Wakefield.
Barcelona is also ahead of Madrid in terms of average price during the first three quarters, thanks to an ADR of €173.5, compared to €140.7 in Madrid. Both cities grew in price by 13.6% and 12.3% compared to the same period last year.
For Albert Grau, partner and co-managing director of Cushman & Wakefield Hospitality in Spain, “hotel prices have consolidated their growth during 2023 compared to last year, but also compared to 2019. Inflation and strong demand continue to put upward pressure on ADR. The forecast is that the prices achieved are close to the ceiling of growth and in 2024 a stabilisation will be experienced if conditions are similar to this year”.
Grenada had the highest increase in revenue per room
Revenue per available room (RevPAR) also improved compared to 2021 and 2019. The average from January to September was €105.4, surpassing last year’s €90.5 and 2019’s €92.
The barometer highlights that RevaPAR “is the indicator registering the most positive evolution during the first nine months of 2023, driven by the rise in occupancy and average prices”.
Occupancy, ADR and RevPAR, how have they performed up to September?
The average RevPAR in hotels in Spain is €105. Source: Cushman & Wakefield.
Specifically, Granada leads the ranking in terms of RevPAR growth, with a 30.2% increase, from €52.2 to €67.9. It is followed by Barcelona with a 26.2% increase, from €107.8 to €136.1, and Madrid, with a 24.5% increase, from €79.3 to €98.8, very close to the €100 threshold.
Marbella is the city with the highest revenue per available room in Spain at €198.3, followed by Barcelona (€136.1) and the Balearic Islands (€129.1).
