- Investment has shifted from new builds to remodelling existing hotels.
- The supply constraint has limited accommodation availability.
- Average daily rates have increased for 61 consecutive months.
- Brands have focused on luxury and premium bookings.
- The shift has prioritised margin improvement over volume growth.
Investment has shifted away from building massive new hotels and toward remodeling existing spaces, keeping the overall room supply tightly controlled. The shift has contributed to the 61 consecutive months of average daily rate increases in the Spanish hotel sector. Hoteliers have chosen to upgrade existing properties rather than expand capacity.
The reduced supply of new hotel rooms has limited the availability of accommodation in popular destinations. This supply constraint has allowed hotels to raise prices even as occupancy growth has slowed. The Hotel Price Index has jumped 5.9pc year-over-year and average daily revenue per occupied room has surged nearly 6.8pc, hitting an average of €156.92.
The investment trend has reflected a strategic shift in the hospitality sector as companies prioritise margin improvement over volume growth. Brands have focused on high-margin luxury and premium bookings as part of their corporate strategy.
