Spain’s tourism sector is rebounding quickly after the pandemic downturn, and for the moment it seems to be weathering the spillover effects of the Ukraine conflict and broader economic uncertainties. The hotel industry has shown a real uplift in demand during the peak summer period after a sluggish two years, though signs remain that the recovery is not fully complete and the aftershocks of the pandemic linger.
Amid the height of the travel season, when activity typically peaks, Spain operates far fewer hotels than before the health crisis. In August, a period traditionally marked by strong demand and full hotel occupancy, a total of 16,328 hotels were active nationwide—far more than last year, yet still well below the pre-pandemic level.
During the previous month, 1,515 more businesses opened than in the same period last year, when mobility restrictions had kept travel subdued. However, establishments still numbered 572 fewer than the 16,900 open in August 2019. Data from the National Institute of Statistics (INE) show that the high-season hotel capacity declined by 3,200 rooms versus the pre-pandemic baseline, totaling 877,350 rooms available this August.
2% 4 and 5 star growing
The hotel sector has been warned that the contraction in the number of active properties may leave a lasting mark, with hundreds of businesses exiting the market, especially in the lower tiers. At the same time, the industry is evolving, with a push toward higher value and a repositioning of many properties into more luxurious offerings.
The downturn in active hotels has affected all segments except four- and five-star properties. While the industry as a whole has shed more than 570 hotels from pre-pandemic levels, the premium segment has expanded. In August, Spain counted 367 five-star hotels, an increase of 24 properties (3,185 rooms) versus the outbreak period, and four-star hotels added 2,881 rooms, about 19,200 more rooms than in August 2019.
Back in 2020, hotel operations faced forced closures on a national scale. In March, the government mandated a full shutdown to curb the spread of Covid, giving hotel chains a short window to close. Only about 300 independent hotels remained open to serve essential workers, continuing to operate during the crisis. INE statistics show no hotels open in April 2020. None.
Job recovery
August marked the height of the summer season with 46.29 million overnight stays, a robust rise of 34% from the previous year, though still just shy of pre-pandemic records. In total, activity last month included 705,400 overnight stays that did not quite reach the peak levels of pre-Covid 2019, nearly matching the 46.99 million stays seen before the crisis.
With the revival in full swing, albeit not complete, Spanish hotels have managed to raise prices in response to higher demand and rising costs driven by inflation. Average daily rates climbed in July and August, reaching about 127.6 euros per occupied room per night—comfortably higher than the pre-pandemic benchmark of 109.6 euros in August 2019, which shows a roughly 16% higher current level.
This is a key indicator for the tourism sector to gauge the real momentum of business and profitability per available room, which guides pricing and occupancy decisions. In August, RevPAR reached 101.6 euros, up about 30% from the previous year and topping the pre-pandemic 2019 level by roughly 16%.
The health crisis left a lasting imprint, yet the latest data illustrate a resilient, though uneven, revival. Five- and four-star hotels appear to be leading the way in recovery, with premium properties expanding their footprint while other segments adjust to a more selective inventory. The sector’s performance reflects a mix of pent-up demand, inflationary pressures, and a continued search for value in a changing travel landscape. Markers from INE and industry analysts highlight that occupancy rates remain a meaningful barometer of the broader recovery, signaling how hotels calibrate pricing and capacity amidst evolving traveler preferences. (INE)