International hotel brands will continue to pour into Spain, according to Global Asset Solution’s Spanish Hotel Market Outlook 2024.
The company said that it expected to see budget brands join the swelling numbers of luxury flags as both domestic and international tourism grew.
David Bóveda, hotel asset manager and author of the report, said: “Spain’s hotel supply continues to be dominated by independent hotels, creating an opportunity for new hotel brands. We have seen a number of five-star brands enter the market, including Four Seasons and Rosewood, which have helped to pull up rates.
“International investors have also targeted the country, drawn to its popularity with visitors, but also the increased adoption of management and franchise contracts, which fit the requirements of the global branded hotel groups.”
The study reported that the recovery of purchasing power in Spain and Europe and Spain’s greater geopolitical stability in relation to competing countries would boost the tourism sector to new records in 2024.
This year was expected to see a 2.3% increase on the year in ADR, with occupancy up 1.1% and revpar rising by 3.4%.
Bóveda concluded: “Despite the popularity of coastal areas, major international luxury hotel chains have focused on big cities like Madrid, Seville, Barcelona, and Bilbao.
“Secondary destinations are now catching the eye of budget hotel brands such as Ibis, Holiday Inn Express and B&B in cities like Lugo, Girona, Logroño, Mataró, and Sant Cugat. The breadth of offering is ever expanding in this inspiring country.”
