How much have prices in Spanish hotels increased since 2019?

“This is a fantastic time to be working in the Spanish hotel sector”. It was guaranteed Alex Robinsonsenior director of STR Industry Partners, at Annual Hotel Investment Conference organized by Cushman & Wakefield this Thursday at the InterContinental Madrid. Not in vain though RevPAR increase (revenue per available room) in European hotels has remained single digit since July 2023, with the exception of September of the same year, which grew by 10%, in Spain it continues to be in double digits. since then, with the exception of April and August last year. The increase that occurs due to ADR growth (average daily tariff), which has increased by 41.7% since 2019, 48 euros more; and not so much class

which has increased by just one point since the start of the pandemic. “But Who needs more jobs with profitability rising like this?“, Robinson asked himself.

The luxury and budget hotel segments are those that reach better results, “without having to reach maximum occupancy”although, given growth in 2024, it will be more balanced than what is happening in Europe and the rest of the world.

A balance that is also evident in the positive occupancy behavior until October, both in leisure and urban centers, with growth led by Madrid, Alicante and Oviedoin all three cases with an increase of 5%. On another plate of the scales there is San Sebastianwith an 8% decline caused by “increased supply.”

Malaga, Valencia and Alicante lead the way in occupancy this year, reaching an average of 83%, 81% and 75% respectively.

Regarding ADRshows “little signs slowdown relative to 2023,” although Madrid remains at +15%, ahead Malaga

(+13%), Seville, Alicante and Canary Islandsin all three cases +11%. Tourist destinations that lead in this ranking in absolute numbers: Marbella (317 euros), Ibiza (277) and Barcelona (194), thanks to the new luxury hotels which open “from very powerful brands“

By 2025, Madrid and Barcelona will continue to grow in RevPAR, albeit at a slower pace, and occupancy rates will follow the same pre-pandemic patterns, so, according to Alex Robinson, “the Spanish hotel market is performing well and has an optimal outlook.” »

How are things going in the European and global hotel market?

demand for European hotelsas the STR manager clarified, “he remains in a positive scenario, although with more moderate growth(relative to previous years and Spanish establishments). The proof of this is 71% average occupancy which, although only a 1% increase, the highest rate among all regions. IN North AmericaFor example, the market that was the first to recover from the pandemic now has zero growth and an average of 64%.

China is still 2% lower, with occupancy at 65%, while the rest of the continent is up 3% to 68%.

He ADRfor its part, continues to grow – 5% in Europe up to $164, and 2% in North America to 162, “although this increase is also due to inflation.” IN China falls 4%but behavior North Africa (+26%), Sub-Saharan Africa

(+20%) and South America (+18%), although they came from low prices.

And the thing is that he ADRas the expert explained, “this stable driver of European RevPARwith an average growth of 6%. the occupation is no longer growingpartly due to the supply entering the market, 350,000 new numbersbuilt while we were in a pandemic, whether in new or repositioned hotels“

“Luxury hotels perform best, as the higher the category of the establishment, the greater the growth in RevPAR. The luxury segment wins on price, while the economy segment wins on occupancy, is more price sensitive and is more susceptible to economic weaknesses,” Robinson said.