Spanish Hotel Sector Soars: Benidorm and Dénia Lead Profitability Surge

The hotel sector in Spain, particularly in destinations like Benidorm and Dénia, has shown strong growth in profitability compared to 2019.

According to a report from Spain’s Chamber of Commerce, the revenue per available room (RevPAR) for hotels between June and September 2023 was 25.9 per cent, exceeding the 22.2 per cent recorded in 2019.

This increase is attributed to a stronger recovery in prices, driven by cost inflation and investments made, along with occupancy levels approaching pre-pandemic figures (-1.5 per cent vs. -2.1 per cent).

In tourist municipalities, Benidorm and Dénia demonstrated significant income growth, with increases of 25.5 per cent and 43.8 per cent, respectively.

The rise in prices played a crucial role, with the average room price experiencing a notable increase of 28.3 per cent.

In the urban destinations segment, Alicante performed well, achieving a revenue of available room at €104.70.

This placed Alicante in the eighth position among Spanish cities with the highest income levels during the summer of 2023.

The top cities in terms of income were San Sebastián (€188.60), Barcelona (€154.10), Palma de Mallorca (€133.80), Málaga (€124.40), Cádiz (€113.70), Bilbao (€106.90), and Valencia (€105.70).

The average hotel room price (ADR) reached 104.9 euros in November 2023, reflecting a 25.4 per cent increase compared to the €83.60 recorded in the same month in 2019.