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Barometer of the hotel sector First Quarter 2019

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The Barometer of the Hotel Sector collects data from 1,200 hotels and more than 163,000 rooms in the Iberian Peninsula. The study is the result of an alliance between STR, a global provider of benchmarking, analytics and market knowledge, especially in the hotel sector, and Cushman & Wakefield Spain, a global leader in real estate services.

The KPI’s of the hotel industry (Occupation, ADR and RevPAR) have grown slightly during the first quarter of 2019. In Spain, occupancy has grown + 0.8% and ADR (average price per occupied room) + 0.6%, which pushes RevPAR (average income per available room) to increase + 1.4%.

The results of RevPAR in the peninsular territory have been positive or very positive, while the Canary Islands and the Balearic Islands have suffered from the decrease in occupancy in their holiday destinations, which has resulted in a decrease of RevPAR of 9% and 8%, respectively. This trend, which was already noted during 2018, is explained by the reduction in reservations by tour operators in these destinations, which have diverted part of the demand to competing destinations.

In the main urban markets, Madrid and Barcelona, the results of this first quarter have been very positive. The Catalan capital leads the growth in RevPAR of the entire State with 12.6% more, while Madrid also achieves a very notable rise of 8.4%.

Occupancy grew by 0.8% thanks to good figures in urban destinations

Cordoba, Barcelona and Seville have been the cities with the highest growth in the percentage of hotel room occupancy compared to the first quarter of 2018. The first has grown by 8.3%, the second by 7.1% and the third, 5.7%.

The most significant decrease was in the Canary Islands and the Balearic Islands, with decreases of 4.2% and 4.4% respectively. The biggest decrease was registered in Fuerteventura, with 17% less occupied rooms compared to 2018. While the result in the Balearic Islands may have a minor impact on the global level due to the low season, the trend in the Canary Islands is more significant since it is high season on the islands.

Bilbao and Malaga lead the increases in ADR

The highest prices in Spanish hotels were registered during the first quarter in Barcelona (132.87€, 5.2% more than in 2018), Marbella (126.77€, up 3.9%) and Canary Islands (119.49€, -4.8% less).
The highest percentage increases in average price have occurred in Alicante, Madrid and Barcelona while Granada, Canarias and Baleares have seen their prices reduced the most.
In the rest of destinations, we generally see slight increases in occupancy with also minimal decreases in ADR. Malaga, Seville, Bilbao and Zaragoza experienced growth in occupancy of + 2.3%, + 5.7%, + 1.9%, + 5.3% respectively, and, conversely, recorded declines in ADR of -0.9%, -1.4%, -0.2 % and -2.5% in all of them respectively.

Madrid and Barcelona lead the increases in RevPAR from January to March

The most pronounced declines in RevPAR were registered in the Canary Islands (specifically in Fuerteventura the fall of RevPAR was -19.8%) and the island of Mallorca, with -17.7% compared to the same period of the previous year. In the Canary Islands and the Balearic Islands, the evolution was -8.8% and -8.4%, driven by declines in employment.

By cities, Madrid has achieved increases in RevPAR up to 76€, which means an increase of +8.4% compared to the same period of the previous year. Barcelona continues in the recovery phase experiencing significant growth both in occupancy (+7.1%) and ADR (+5.2%), which has pushed RevPAR to grow +12.6% (to 91€) in the first quarter of the year.

Barometer of the Spanish Hotel Sector

STR, a global provider of benchmarking, analytics and market knowledge, especially in the hotel sector, and Cushman & Wakefield, a leading global consultancy in real estate services, have an agreement for Spain, Portugal and Andorra to carry out the Barometer of the Spanish Hotel Sector, which presents the quarterly results of the main statistical indicators of the industry.