The hotel industry in Spain is currently consolidating its renown as the most dynamic in Western Europe, leading occupancy rates thanks to the recovery of tourism, momentum in the premium segment, and constant diversification of its offer.
The Spanish hotel sector closed 2024 with record highs, according to a report prepared jointly by STR and Cushman & Wakefield. The data shows that, for the first time since the pandemic, occupancy returned to 2019 levels, while revenue per available room and the average daily rate reached record highs, confirming Spain as one of the most dynamic hotel markets in Europe. The report notes that the elasticity in average daily rate versus demand has allowed for rate adjustments despite an environment of high inflation and operating cost pressures.
Average occupancy in Spanish hotels in 2024 stood at 74.6%, just a tenth of a point below the 74.7% recorded in 2019, the best year on record for the sector. This represents an increase of 2.4% over 2023. Malaga leads occupancy rankings at 83.9%, followed by Valencia (81.1%) and the Canary Islands (79.4%). The largest year-on-year increases in occupancy were recorded in Alicante (+4.8%), Madrid (+4.4%), Marbella (+4%) and Zaragoza (+3.9%). However, cities such as Valencia (-0.8%), Barcelona (-0.6%) and Granada (-0.4%) experienced slight declines.
The average daily rate reached €158.4, 8.9% higher than in 2023 and 33% higher than pre-pandemic levels (€118.4 in 2019). Marbella led the way with an ADR of €303.4 (+8.2%), followed by the Balearic Islands (€194.9) and Barcelona (€187.8). Madrid recorded the biggest increase in ADR, up 14% to €170.8, while Malaga (+11.4%), Alicante (+10.3%) and the Canary Islands (+10.2%) also reported double-digit increases.
The index for revenue per available room grew by 11.5% year-on-year to €118.3, compared to €88.5 in 2019, an increase of 33.6%. Marbella leads this indicator as well at €201.3, followed by Barcelona (€146.4) and the Balearic Islands (€133.3). Madrid (+19%), Alicante (+15.6%) and the Canary Islands (+13.6%) recorded the highest increases.
These impressive figures have also resulted in a boost for tourism real estate. Hotel investment in Spain reached €3 billion, with 147 assets transacted. This figure is lower than the €4 billion recorded in 2023, due to a significant reduction in the number of portfolios for sale in 2024. Of the total number of transactions, 59% were led by domestic investors, while international investors accounted for 41%, in contrast to 2023, when institutional funds led the market. Hotel chains participated in 36% of total investment, once again consolidating their position as key players.
In 2025, budget hotels and branded residences are expected to gain prominence over luxury, which has dominated in recent years. Assets with change-of-use options could also capture the attention of certain investment profiles.
In summary, the hotel industry in Spain is dominating across the board, thanks to booming intercontinental tourism, a strategy focused on the premium segment, a firm commitment to sustainability and an innovative investment model. Challenges will arise in relation to the balanced management of rates, talent and differentiation, but the outlook points to a solid, resilient industry that is prepared to lead in the long term.
