Spanish Hotel Barometer – Q1 2024

Spanish hotels posted robust growth in revenue per available room in Q1 2024, outpacing the same period last year by 17.1%

• According to recent reports, indicators for the hotel industry continue to trend upwards, with occupancy at 68.5% in the first quarter, an increase of around 4.9% from the January-March 2023 figure. Strong demand is driving both average daily rates as well as RevPAR. (revenue per available room), the latter increasing by 17.1%.
• The fact that Easter fell in the first quarter improved the results of destinations with higher holiday demand, with the Canary Islands topping the RevPAR table with €144.40, followed by Barcelona with €107.30 and Malaga with €104.70 . Taking advantage of one of its seasons, the Canary Islands recorded an occupancy rate of 84.3%.

Produced jointly by STR and Cushman & Wakefield, the Hotel Sector Barometer confirms growth in tourism and hotel activity in Spain, with outstanding results across all indicators showing an increase compared to figures from the first quarter of 2023. Hotels in Spain have reached an occupancy of 68.5% between January and March (+4.9% compared to the same quarter in 2023), with average daily rates (ADR) of €134.60 (+11.7%) and revenue per available room (RevPAR) of EUR 92.10 (+17.1%).

In terms of destinations, the Canaries topped the table for all three indicators. With the first three months of the year being peak season for the islands, occupancy understandably reached 84.3%. In turn, ADR reached EUR 171.30, and RevPAR EUR 144.40. These figures represent a significant increase over the figures for the first quarter of the previous year, amounting to 16.7% in terms of ADR and 22.2% in terms of RevPAR. The fact that the Easter holidays fell in March allowed the Canary Islands to add domestic tourism to the usual international visitors who come in the winter months.

Employment rises by 4.9% across Spain

Alicante and Marbella saw the highest year-on-year increase in occupancy in the first quarter of 2024, totaling 15.3% for both. They were followed by Bilbao with 9.4% and Cordoba with an increase of around 8.7%. The only destinations that registered a slight decrease in occupancy were Granada (-4%) and the Balearic Islands (-1.1%).

In absolute terms and with an increase of 4.7% on the previous year’s figure, the Canaries topped the ranking with a remarkable 84.3%. Maintaining the strong performance of the previous year, Malaga took second place with 76.2% and Valencia achieved 75.1%. In turn, Barcelona and Madrid also grew by 1.9% and 6.6% respectively, with the pair reaching 70% occupancy. Destinations with the lowest occupancy rates at the start of the year were the most holiday-oriented, such as Marbella (55%) and the Balearic Islands (49.2%).

Conformable Elvira Arjona, Account Manager Spain at STR, “the hotel industry corroborates forecasts that indicated figures for 2024 that could even exceed those of 2023. This first quarter confirmed the increase in occupancy and consequently outstanding levels of ADR and RevPAR for a part of the year that represents a low level. season in many regions”.

Conformable Albert Grau, partner and co-head of Cushman & Wakefield Hospitality Spain, “The trend in the first quarter and bookings recorded for the summer campaign make us optimistic about 2024 as a whole. The above, together with excellent operational management in optimizing resources, points to an extremely positive end to the year in terms of sector profitability.”

Led by the Canary Islands, Marbella and Barcelona, ​​ADR reached €134.50 in the first quarter

Since the return to normal activity following the effects of the pandemic, average room rates in the Spanish market have steadily increased in 2022 and 2023, and this trend looks set to continue in 2024. ADR increased by approximately 11.7% for the country as a whole, going from €120.50 in the first quarter of 2023 to €134.60 this year. At 21.9%, the highest price increase was recorded in Malaga, followed by Bilbao at 18.8% and the Canary Islands at 16.7%.

In absolute terms, the Canaries boasted the highest ADR in the first three months of the year (€171.30), followed by Marbella (€168.40) and Barcelona (€154.10). The cheapest hotel rates in Spain between January and March were found in Zaragoza (€71.60) and Cordoba (€91.60).

In his opinion Bruno Hallé, partner and co-head of Cushman & Wakefield Hospitality Spain, “While demand is proving to be particularly strong and prices may continue to rise throughout 2024, it would make sense to see some moderation already this quarter, absent the Easter effect. The good news of a clear improvement in the low season confirms the trend towards reduced seasonality in many destinations”.

Spanish hotel RevPAR rose 17.1% in the first quarter

Revenue per available room (RevPAR) reached an all-time high of EUR 92.10 in the first quarter, up approximately 17.1% from EUR 78.70 for the same period last year. Growth was particularly notable in destinations such as Marbella (+31.4%), Bilbao (+30%) and Alicante (+26.1%). Occupancy growth over the previous year’s figure also exceeded 15% in Alicante and Marbella, explaining the very positive growth in income.

In absolute terms, the highest revenue of €144.40 was achieved by the Canary Islands, coinciding with the peak season for these islands. Barcelona (€107.30) and Malaga (€104.70) followed. With a figure of €101.20, Madrid was the fourth and last Spanish destination to surpass RevPAR of €100 in the first quarter. At the lower end we find Zaragoza at €49.90 and the Balearic Islands at €45, the latter figure being dragged down by low occupancy.

The barometer of the hotel sector gathers data from 1,200 hotels and approximately 150,000 rooms in the Iberian Peninsula. The study is the product of an alliance between STR, a global provider of benchmarking, analysis and market knowledge specialized in the hotel sector, and Cushman & Wakefield Spain, a world leader in real estate services.

About Cushman & Wakefield

Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenues of $9.5 billion from its core services of property, facilities and project management, leasing, capital markets and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more.

For additional information, visit www.cushmanwakefield.com

Bruno Halle
Partner – Co-Head of Hospitality Spain
Cushman and Wakefield

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