Canary Islands lead Spain's hotel sector in Q1 occupancy, rates

The latest hotel barometer, compiled by STR and Cushman & Wakefield, shows a “solid” start to the year for Spain’s hospitality industry, which continues to demonstrate resilience and “safe‑haven” characteristics amid global uncertainty.

Overall Performance

• Canary Islands topped the three key indicators:

  • Occupancy: 84.5 %
  • Average Daily Rate (ADR): €187.1
  • Revenue per Available Room (RevPAR): €158.2

• National figures for the first quarter of 2026:

  • ADR: €143.4 (up 4 % YoY)
  • RevPAR: €98.8 (up 3.8 % YoY)
  • Occupancy: 68.9 %, essentially unchanged from the previous year.

“The barometer reflects a solid start to the year for the Spanish hotel sector, which continues to show resilience and safe‑haven value in a context of global uncertainty,” the report states.

Occupancy

“The year can remain positive because hotels keep attracting demand,” says Albert Grau, partner and co‑director of Cushman & Wakefield Hospitality Spain.

• Canary Islands lead with 84.5 % occupancy.
• Zaragoza follows, posting a +5.9 % growth rate.
• Málaga records 75.2 %, closely matched by Seville at 75 %.
• Other destinations below the 75 % threshold include Madrid, Valencia, Alicante, and Barcelona at 71.7 %.

Bruno Hallé, partner and co‑director of Cushman & Wakefield Hospitality Spain, adds: “The strong figures for the Canary Islands forecast a good summer for the peninsula, and together with rising occupancy in Madrid and Barcelona, it is unbeatable news for the sector, anticipating a positive high season with capacity for moderate price and revenue growth.”

Average Daily Rate (ADR)

• Marbella ranks second nationally with an ADR of €178.4.
• Barcelona posts €166.6 (+1.6 % YoY).
• Madrid reaches €161.4 (+2.6 % YoY).

Only Granada saw a decline, with ADR down 1.8 %. The most notable ADR increases were recorded in:

• Marbella: +9.1 %
• Seville: +9 %
• Balearic Islands: +8 %
• Canary Islands: +7 %
• Benidorm: ≈ +8 %

“Spanish hotels are maintaining prices at historic highs and can continue to do so in 2026,” notes Luis Arsuaga, partner responsible for Capital Markets Hospitality Spain, emphasizing the operational challenge of preserving margins amid rising costs.

Revenue per Available Room (RevPAR)

• Spain’s overall RevPAR for Q1 stood at €98.8, up 3.8 % YoY, driven primarily by the ADR improvement.
• After the Canary Islands, the top performers are:
  • Madrid: €119.7
  • Barcelona: €119.4 – both benefiting from strong MICE tourism and leisure offerings.
• Málaga ranks fourth with €103.9.

Significant double‑digit RevPAR growth was also observed in:

• Seville: +11.7 %
• Valencia: +10.8 %
• Zaragoza: +9.5 %
• Alicante: +9.4 %

These figures suggest a robust recovery and a promising outlook for Spain’s hotel market as the year progresses.