Spanish hotel barometer Q3 2021

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  • The Christmas season confirmed that June was a turning point for the hospitality industry. Although the indicators in the barometer are still far from pre-pandemic, the increase in travel activity points to a recovery that should be confirmed in the coming months.
  • In the first nine months of 2021, the average occupancy of Spanish hotels (including closed hotels) reached 26%, which corresponds to an increase of around 20% compared to the same period of the previous year. The average daily rate (ADR) also climbed to around 116 euros, which corresponds to an increase of 17% compared to the previous year. These two upward trends together led to an increase in the average revenue per available room (RevPAR) by 41% to € 30.
  • The recovery trend appears even more pronounced if one just looks at the September data. Last month, Spanish hotels saw almost 50% occupancy and an ADR of € 114, resulting in a RevPAR of € 56. This corresponds to a growth of around 369% compared to September 2020.

Madrid / Barcelona, ​​26. October 2021.-

STR and Cushman & Wakefield are jointly creating the Hotel Sector Barometer for Spain, which is showing an upward trend in the third quarter of 2021 for the first time since the pandemic began in March 2020, to begin the recovery process. This should go faster in the leisure sector.

As the indicators for Spain as a whole have skyrocketed and it shows the total hotel inventory (Total Room Inventory), whether open or closed, the comparison between September 2020 and the same month of this year is the strongest sign of this recovery. The occupancy in September reached 49%, three times more than the 16% occupancy in the same month of the previous year. The ADR also rose by 52% to € 114. In total, the RevPAR reached € 56, an increase of 369% compared to September 2020. This activity growth reached a high of 44% in the Balearic Islands, which corresponds to an increase of 577% compared to September of the previous year.

The occupancy rate reached 26% in the first nine months of the year

In relation to the entire hotel stock in Spain, the average occupancy reached 26% in the first nine months of the year. Although this value has increased by 20% compared to the same period in the previous year, it is still well below the hotel occupancy rate of 76% in the first nine months of 2019.

The highest occupancy figures for the first nine months of 2021 were in Malaga (44%), Zaragoza (44%) and Alicante (42%). Madrid achieved a value of 27% and in Barcelona the occupancy rate was 25%. The lowest occupancy figures, on the other hand, were recorded in the Canary Islands (19%) due to the restrictions on air traffic and in the Balearic Islands (20%), which were additionally hampered by the high seasonality. Nevertheless, the data for the Balearic Islands show a clear trend reversal in September with a growth in occupancy of 577% compared to September 2020.

According to the opinion of César Escribano, STR Country Manager for Spain and Portugal, “This season was undoubtedly the summer of hotel recreation, especially in vacation destinations, where occupancy and sales in August reached or exceeded 2019 levels. Domestic travelers were undoubtedly the leading players in terms of bookings. This applies in particular to coastal destinations, where an occupancy rate of 90% has been achieved and a sales level (RevPAR) similar to that in 2019 was achieved. According to our data, the propensity to travel is increasing and we are finally able to predict a strong winter season for the Canary Islands at the level before the pandemic “.

Corresponding Bruno Hallé, Partner and Co-Head of Cushman & Wakefield Hospitality Spain, “The indicators from the barometer help us to show trends. Still, it’s important to be careful when comparing the data to 2020, a year when there was virtually no activity as of March. From now on, the industry must work to restore both the vacation and urban segments, and do so with sensible pricing policies that encourage activity without undermining value or endangering a leading global tourism brand like Spain. “

The ADR for the first nine months of 2021 reached € 116, an increase of around 17% compared to the same period of the previous year.

During the eighteen months of the pandemic, the lack of transparency put pressure on hotels’ pricing policies. However, the data shows that the hospitality industry has recognized the importance of resisting these pressures. In the first nine months of the year, the ADR rose by around 17% to € 116. This corresponds to the level before the pandemic in 2019, when the ADR reached € 120 in the same period.

The highest room rates were in Marbella (€ 298), the Balearic Islands (€ 209), the Canary Islands (€ 115) and Barcelona (€ 100). Although Madrid’s ADR was around € 88, the September figure (€ 105) seems to point to a recovery in the months ahead. The lowest room rates were recorded in Zaragoza (€ 56) and Granada (€ 68).

According to the opinion of Albert Grau, Partner and Co-Head of Cushman & Wakefield Hospitality Spain,Hotel operations recovered in the summer and if the pandemic remains under control, we will also bring hotel price levels back to 2019 levels. The pressure on energy prices is also a major issue for the industry, so reasonable pricing is essential while demand recovers “.

The RevPAR exceeded € 30 between January and September, which corresponds to a growth of 41% compared to the same period last year.

The downward trend in sales per available room (RevPAR) in the previous quarters has been reversed and with the start of summer the average of € 30 for the whole of Spain has been exceeded. In September alone, the RevPAR was € 56 and shows that the recovery is picking up speed. The highest RevPAR values ​​for the first nine months of the year were recorded in Marbella (€ 88), the Balearic Islands and Malaga (€ 43 each). The lowest values ​​were recorded in Granada (€ 19), Cordoba (€ 21) and the Canary Islands (€ 23). Madrid and Barcelona also followed the upward trend compared to 2020 and achieved values ​​of 24 and 25 euros respectively.

the Barometer of the hotel industry summarizes data from 1,200 hotels and more than 150,000 rooms in Spain. The study is the result of an alliance between STR, a global provider of benchmarking, analysis and market intelligence specializing in the hotel sector, and Cushman & Wakefield Spain, the world’s leading provider of real estate services.

About Cushman & Wakefield

Cushman & Wakefield is a leading global provider of real estate services that deliver exceptional value by putting ideas into practice for users and owners in the real estate sector. Cushman & Wakefield is one of the largest real estate services companies with more than 53,000 employees in approximately 400 offices and 60 countries. In 2019, the company had sales of $ 8.8 billion in real estate services, facility and project management, leases, capital markets, appraisals and other services.

With more than 30 years of experience in Spain, Cushman & Wakefield covers the entire country. The headquarters are in Madrid (Edificio Beatriz, José Ortega and Gasset, 29, 6º) and Barcelona (Passeig de Gràcia, 56, 7º). For more information, please visit www.cushmanwakefield.es or follow us @CushWake on Twitter.

About STR

STR provides first class benchmarking, analytical and market outlook information to clients from a variety of sectors. STR was founded in 1985 and is represented in 15 countries and is headquartered in Hendersonville, Tennessee, USA. The international headquarters are in London, UK, and another Asia Pacific headquarters is in Singapore. In October 2019, STR was acquired by CoStar Group, Inc. (NASDAQ: CSGP), the leading provider of real estate wealth business intelligence, analytics and online markets. For more information, please visit str.com and costargroup.com.


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