Benidorm stands as the tourist capital of the Costa Blanca and a key hub within the Valencian Community. The city hosts a dense concentration of hotel capacity, with many chains expanding their footprint to meet demand from visitors who are drawn to its beaches, nightlife, and year-round events. The scale of rooms across the destination underscores its appeal and the opportunities it presents for familiar brands to broaden their activities.
Annual rankings reveal Benidorm’s influence within the broader Spanish tourism industry. The city remains a reference point among leading hotel groups, with a history of consolidations and growth that position it ahead of many peers in the sector. Among the major players, the Melia group operates a substantial portfolio—roughly 33,000 rooms across 132 establishments in Spain—achieving a standout position relative to rivals in the market, including those in the Costa Blanca region.
Within the province, several groups have their headquarters or are led by local entrepreneurs. The service group chain founded by Jose Maria Caballe continues to feature prominently, ranking 24th this year after shifts caused by competitors Ilunion and Fergus Hotels. The enterprise manages a total of 18 hotels and 4,758 rooms, maintaining a strong local presence.
One of the notable Magic Costa Blanca establishments contributes to the region’s profile, with the group managing 13 properties at number 44 on the provincial list, a position that reflects competitive dynamics and capacity gains by other chains. The portfolio totals 2,678 rooms in the region.
One of the more recognizable notes in the landscape is the Magic Costa Blanca network itself, which has historically shown resilience in adapting to market conditions and changing consumer preferences across its properties.
Another significant player in the province, HR Hotels, made a notable climb, moving up six places to position 56 after recent expansions. The chain, founded by José Hernández, added Hotel Golf Playa de Castellón and Sorolla Centro de València to its operating portfolio earlier this year, bringing the total number of operating properties to 20 and yielding 2,110 rooms. These moves illustrate strategic growth through acquisitions and integration of new openings, as reported by Hosteltur.
Meanwhile, the Sandos and Marconfort Hotels family, including several properties such as those in location 61, adds seven hotels and 1,923 rooms to the national tally. The scope of this group in Spain sits alongside other notable Benidorm hoteliers who have diversified into regional markets, including ventures outside Spain in places like Mexico, where Poseidón hotels have also pursued expansion over the years, totaling seven hotels and 1,767 rooms under its umbrella.
There is also recognition of the Harbor Hotels chain, a business once supported by Hosbec’s leadership. The portfolio has contracted, with the group dropping 11 hotels and four positions to 72nd place, aggregating about 1,647 rooms. Bali Group remains another provincial representative, contributing 1,222 rooms spread across three hotels to the list.
The Covid-19 period left a clear imprint on the Costa Blanca hospitality sector, with revenue declines across similar profiles of chains that report their figures to Hosteltur. In this cycle, four major chains—Magic, Servigroup, RH, and Poseidón—collectively posted revenue around €169.69 million, a 145% rebound from the €69 million earned in 2020. This uplift aligns with the overall market recovery, though it still sits short of the pre-pandemic highs observed in 2019, when total occupancy and turnover reached higher marks. The broader implication is that the region’s leading groups managed to regain a meaningful portion of their lost turnover as restrictions eased and travel demand rebounded.
Observers note that the recovery retained some fragility, given that a substantial portion of Benidorm’s hotel capacity experienced closures or reduced activity early in 2022. The general secretary of Hosbec highlighted that around 70% of Benidorm’s hotel production faced temporary closures in the first quarter, a factor that influenced annual stay volumes and revenue trajectories. Projections suggested that year-end overnight stays could be 20 to 25% below 2019 levels, yet improvements in room rates and efficiency were expected to cushion the impact on overall revenue. These dynamics reflect the industry’s sensitivity to both demand fluctuations and price adjustments as markets normalize.
Regarding expansion plans, Montes indicated a pragmatic approach among groups across the state. Many family-led enterprises focus on cautious growth, expanding capacity in line with market signals rather than pursuing aggressive, predefined targets. While opportunities surface, the emphasis remains on sustainable investments and ensuring that new facilities align with expected profitability and the capacity to generate steady returns for investors. This prudent stance echoes a broader pattern in the region where strategic acquisitions and selective openings drive long-term resilience rather than rapid, unchecked expansion.