The main conclusion of the report is that after the harsh hiatus of the pandemic, “all destinations are recovering at a more or less rapid pace thanks to demand and improving occupations”. This good behavior of demand during the first half of the year portends a summer season with figures already very similar or even higher than those reached in 2019, before the pandemic.
The average occupancy of Spanish hotels was 63% in the first half of 2022, which represents an improvement of 118% compared to last year, although there is still room to reach the figure reached in 2019, a record year, during which it was 72%.
Comparison of hotel occupancy by destination.
This improvement in the occupancy rate has also enabled hotels to improve their revenue and average prices. The RevPAR for all of Spain was 67 euros while the ADR is already 123 euros.
The best occupancy level was achieved by hotels in Malaga, which managed to occupy 75% of their available beds, which shows that the city has managed to adjust its demand according to the seasons. Valencia and Alicante complete the occupancy podium, with 70% and 69% respectively.
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As for the big cities, Madrid reaches 63% while Barcelona rises to 66%, while in the same period of 2021 it was 29% and 26% respectively.
In Spain as a whole, the occupancy rate was around 120% higher than last year for the same period, but almost 10 points below what was achieved in 2019, it is therefore still possible to continue the reactivation tour.
the price recovers
Prices are also recovering in line with demand to reach 123 euros, 39% more than in the first half of 2021 and exceeding the figures reached in 2019, which were 113 euros for the whole country.
“This increase in ADR makes it possible to pass on part of the price increase resulting from inflation, even if the operating margin continues to shrink and is one of the biggest concerns for hoteliers”, indicates the barometer.
The average daily rate (ADR) by destination.
Marbella is by far the destination with the highest ADR, reaching 248 euros. They are followed, in this order, by Barcelona (146 euros), the Balearic Islands (139 euros), the Canary Islands (131 euros) and Madrid (129 euros). Among the cities that end the ranking with the lowest prices are Bilbao (91 euros) and Zaragoza (66 euros).
For Bruno Hallé, partner and co-director of Cushman & Wakefield Hospitality in Spain, “the pricing strategy is also affected by inflation and energy prices. For the moment, it is difficult to have a greater impact on the increase in the prices of the hotel product so as not to affect demand, but after the summer season, it will be necessary to plan the following months in view of the operating margin”.
Revenues close to 2019
As for revenue per available room (RevPAR), it jumped 203% in the first half, approaching the figures of 2019.
The poor indicators caused by the pandemic in 2020 and 2021 mean that the return to a certain normality during this year will generate big changes in the Barometer. The hotel industry recorded a RevPAR of 77 euros throughout Spain. This figure represents 203% more than the 25 euros reached during the first half of last year. In 2019, the RevPAR for the first half was 81 euros, which is 4 euros more than this year.
Revenue per available room (RevPAR) by destinations.
Marbella (147 euros), Barcelona (96 euros) and the Canary Islands (90 euros) topped the RevPAR ranking, followed by Malaga (87 euros) and Madrid (81 euros). The biggest increase compared to 2021 is recorded in Barcelona, with a growth of 342%, which shows that it has benefited this year from the recovery of international tourism and MICE, which last year was almost non-existent. Madrid, with 240% more, is the second biggest increase confirming the good moment of the capital.
Granada (53 euros), Bilbao (52 euros) and Zaragoza (40 euros) close the RevPAR ranking during these first months, although returning to levels very similar to those of 2019.
The Hotel Sector Barometer collects data from 1,200 hotels and approximately 150,000 rooms on the Iberian Peninsula.