A growing body of evidence points to a recovery in tourism. On this occasion, the average occupancy rate of Spanish hotels inspires confidence in the tourism sector. At least according to the data presented in the report on the hospitality sector in Spain, which analyzes the first quarter of this year.
A report jointly prepared by STR and Cushman & Wakefield shows a positive balance for the first three months of 2022. Even though this period was still marked by the effects of the pandemic, in particular the omicron strain that affected the industry. In any case, it was possible to approach the indicators that existed before the global health crisis. Thus, the recovery seems to have accelerated.
In terms of key figures, Spain has achieved an average hotel occupancy rate of 51% over this period. This may not seem like much at first glance, but it should be taken into account that this percentage is 121% higher than in the same period in 2021. In fact, it is quite close to the first regular quarter to 2019.
ADR (Average Daily Rate) amounted to €104. This means that the average daily price has risen by almost 40% compared to the same period last year. Finally, RevPAR also benefited from higher occupancy rates. Thus, the income per free number reached 53 euros, which is 209% more than in the first quarter of 2021.
Canary Islands at the forefront
Before analyzing the data further, it should be noted that traditionally in Spain as a whole, the first quarter is characterized by the lowest occupancy. But in the Canary Islands, thanks to the restoration of international air travel, occupancy has reached 66%. This is equivalent to a 206% increase compared to the first quarter of last year, when the effects of the pandemic were very visible.
Other destinations that performed well given the context were coastal cities such as Malaga (62%), Alicante (60%) and Valencia (54%). The Andalusian cities of Seville and Cordoba also performed well, with 55% each. Madrid had an occupancy rate of 51% and Barcelona 47%. The lowest occupancy was recorded in Bilbao and the Balearic Islands.
According to experts, the data for the first quarter confirm expectations of a staggering economic recovery with different behaviors depending on the direction. Destinations with a strong holiday component are doing the best at the moment, such as the Canary Islands and Andalusia.
This is very positive news as pre-pandemic levels are approaching. As far as vacation spots go, 2022 could be a year of full recovery. Gradually, we will also see how activity is restored in Madrid and Barcelona, where the weight of corporate and MICE tourism is very important.
ADR is €104 nationwide
As for ADR, in the first quarter it amounted to €104. This exceeded the €103 achieved in the first quarter of 2019. Among the destinations with the highest ADR is Marbella (€171), followed by the Canary Islands (€134). As for the places with the cheapest hotels, these are Zaragoza (58 euros) and Bilbao (66 euros). Meanwhile, the highest ADR growth compared to the first quarter of 2021 was recorded in Barcelona, at 61%.
Pricing strategy is also affected by inflation and energy prices. At the moment, it is difficult to convey this increase in the prices of hotel products so as not to affect demand. But developments in the coming months require further analysis.
RevPAR increases by 209%.
The first quarter is traditionally the low season for most destinations in Spain. However, RevPAR is growing exponentially compared to last year in destinations such as Alicante (+392%), Malaga (+293%) and Valencia (+258%). The same trend is observed in major cities: RevPAR is 56 euros in Madrid (+200%) and 53 euros in Barcelona (+255%).
Revenue per vacant room also confirmed its recovery due to improved occupancy rates. Once again, the Canary Islands lead the block with a RevPAR of €89. They are followed by Marbella with 74 euros and Malaga with 61 euros. Thus, the data analyzed in the report on the hotel sector suggests that during the months of the high season, the long-awaited stability in the hotel sector in Spain can be achieved.