By July, hotel pricing softened as the peak summer travel period peaked, marking a trough in the last 26 months with a gentle 6.2% rise from the prior month. Overnight stays remained below pre-crisis highs, yet year-over-year figures edged up by 2.5% compared with July 2022. This pattern aligns with the ongoing relaxation of travel restrictions while demand continues to be shaped by seasonal forces. INE data indicate that 192.9 million nights were consumed from January through July, up 10.8% versus 2022 and slightly higher than the first seven months of 2019, signaling a healthy but uneven recovery in demand across the year.
In July, hotel activity surpassed the 43.1 million overnight stays target, with non-resident travelers accounting for 27.7 million nights and residents contributing 15.3 million nights. This split highlights continued international interest alongside domestic travel volumes as destinations reopen and tourism capacity expands. [INE attribution]
The price increase is moderate
The Hotel Price Index (IPH) recorded a 6.2% annual rise, a decline from 9% in June and 4% in May, indicating a cooling trajectory after earlier spikes. The rate in July represents the lowest monthly increase since price growth began accelerating in mid-2021, when year-over-year rises reached double digits. This moderation suggests price discipline and competitive dynamics among hotels as supply improves and travelers seek value. [INE attribution]
Compared with July 2023, the steepest hotel price gains were registered in Melilla (24.7%) and Navarra (14.3%), while Cantabria showed modest growth (1.7%). Looking at categories, one-star hostels saw the most pronounced uplift at 10.7%. In July, the average daily rate (ADR) climbed 6.3% to €128.8, staying well above 2022 levels and pre-pandemic benchmarks. [INE attribution]
Profitability, measured by revenue per available room (RevPAR), stood at €96.5 in July, up 7.5% from the prior year and about 25% higher than the pre-pandemic July 2019 level, underscoring resilience in the hotel sector. By category, five-star ADR averaged €298.6 (versus €216.3 in 2019), four-star ADR €134.8 (vs €111.6 pre-pandemic), and three-star ADR €110 (vs €88.2 then). RevPAR for July stood at €216.1, €110.2, and €85.2 respectively for those categories. Estepona emerged as the standout destination with the highest ADR and RevPAR, reporting a daily room revenue of €298 and €250.4 RevPAR per available room. [INE attribution]
Non-citizens are falling
Nights spent by domestic travelers in July exceeded pre-pandemic levels by 3.4%, while accommodations by non-residents dipped by 1.9% compared with July 2019. The average stay length declined by 0.6%, settling at about 3.4 nights per traveler versus July 2022. UK and Germany travelers accounted for the largest shares of non-resident stays, together making up roughly 25.5% and 16.6% of total overnight stays, respectively. France, the Netherlands, and Italy followed with 8.6%, 4.8%, and 4.4%. This mix reflects ongoing shifts in international market demand as borders reopen and travel patterns normalize. [INE attribution]
Main destinations
The leading July destinations were the Community of Andalusia, Catalonia, and Valencia, together hosting more than half of the month’s nights. Foreign visitors preferred the Balearic Islands with 34.5% of total accommodations, ahead of Catalonia (21%) and the Canary Islands (18.4%). In April, occupancy rose by 70.2% with a 1.3% year-over-year increase, while weekend occupancy climbed to 74.1% with a 1.5% gain. The highest bed occupancy was recorded in the Balearic Islands at 87.5% in July, rising to 90% in the Palma-Calvià area, followed by the Canary Islands at 75.8% and the Basque Country at 74.3%. The cities drawing the most overnight stays were Barcelona, Madrid, and Calvià, confirming their enduring appeal for both leisure and business travel. [INE attribution]