Hotel industry faces record Easter week, focusing on profitability and the domestic market
Major Spanish chains are approaching technical full‑capacity in the Canary Islands and Andalusia
The Spanish hotel industry is entering this year’s Holy Week with historic‑level expectations, driven by a broad increase in profitability and bookings despite ongoing geopolitical tensions in the Middle East.
Saving the sector from a turbulent international backdrop, the country’s leading hotel groups anticipate a positive results campaign, underpinned by strong advance sales and a pricing power that continues to rise. With occupancy already hovering around 90 % in key destinations, the industry aims not only to match last year’s figures but to improve its profit margins.
The Ministry of Industry and Tourism confirms this trend, noting a record‑breaking 2025 with 96.8 million visitors. Minister Jordi Hereu states:
“The 9.3 % rebound in January spending shows that the Spanish model is shifting toward added value.”
Nevertheless, the hotel employers’ association CEHAT warns that rising fuel prices and problems on the high‑speed rail network constitute the main short‑term risks for the sector.
Travelers will feel a relief in their wallets this Holy Week thanks to a notable deflation in the airline sector, with average flight prices expected to drop 20 % on international routes and 9 % on domestic routes compared with the previous year, according to Kayak data that also predicts a recovery in international travel.
“Refuge Effect” Boosts Hotels
The major hotel chains agree that Spain is the safest destination amid instability in the Eastern Mediterranean.
RIU Hotels & Resorts already reports 80 % occupancy in its domestic locations, 6.2 % higher than last year, and expects to reach “technical full‑capacity” thanks to strong demand from the Canary Islands, the Balearics and Andalusia. Its flagship property, Riu Plaza España in Madrid, is projected to be fully booked, underscoring robust demand in the country’s main tourist hubs.
RIU remains cautious about the fragile international environment. While Spain captures bookings diverted from conflict zones, the chain warns that this effect could wane if the crisis becomes prolonged and global demand contracts. Energy‑cost pressures could also raise transportation and operating expenses, influencing traveler behaviour toward the end of the season.
Meliá Hotels International expects this Holy Week to surpass 2025 results, driven by a “very positive” advance‑sale and double‑digit growth in RevPAR. The company highlights the Canary Islands as a “refuge destination,” alongside strong performance in key urban markets such as Seville, Valencia and Palma, where rates are climbing close to the high‑single‑digit range.
Despite optimism from diverted bookings, Meliá stresses that growth must be built on quality and higher average spend, aiming for a value‑added tourism model that does not rely on temporary wartime instability in competing destinations.
Palladium Hotel Group projects a highly profitable season, forecasting RevPAR growth of 11 % in the Balearics and 9 % in its urban hotels. This outlook rests on a premium‑segment consolidation strategy, including the opening of The Unexpected Ibiza Hotel and the renovation of BLESS Ibiza, reinforcing its high‑value offering.
In market terms, the United Kingdom leads European bookings, followed by Germany and Spain. In the Americas, the United States and Canada dominate, with an anticipated 7 % rise in room‑revenue across the group’s American assets.
Minor Hotels (NH) analyses the campaign cautiously, noting that while a massive shift of bookings has not yet materialised, a prolonged Middle‑East crisis could concentrate demand in “the European refuge.” The chain warns of a possible contraction in the U.S. market and reduced flows from Asia, as regional instability undermines its role as a strategic hub linking to Europe.
The group points to strong performance in European cities such as Nice, Prague and Bologna, while in Spain interest centres on Tenerife, Valencia, Alicante, Málaga and Bilbao. Favorable weather forecasts could allow the hotelier to exceed previous Holy Week records.
Barceló Hotel Group identifies the Canary Islands as its star destination for Holy Week, expecting a ten‑point occupancy increase over last year, a 5 % rise in average room price across Spain, and occupancy three points above the previous year. Looking ahead, the group bets on de‑seasonalisation and growth in less‑traditional areas such as “Green Spain” and interior tourism to avoid over‑saturating sun‑and‑beach destinations in summer.
Paradores approaches the period with reinforced optimism, buoyed by a recent surge in bookings and a target to surpass the 79 % average occupancy recorded in 2025. The chain highlights excellent performance in the Canary Islands (over 85 % occupancy) and anticipates full‑capacity in traditional sites such as Málaga, León and Cuenca.
While recognising Spain as a safe destination, Paradores remains cautious about inflation stemming from the Middle‑East conflict, which could dampen European demand. The chain currently dismisses a massive shift from markets like the United States or France for geopolitical reasons, reaffirming its focus on sustainability and de‑seasonalisation.
Spain Captures Tourist Flows
Eurostars Hotel Company expects Holy Week occupancy to match or slightly exceed 2025 levels, emphasizing Andalusia’s strong performance driven by cultural processions. The chain maintains moderate rate evolution, which has not hindered solid demand in Spain and major European capitals.
Iberostar Hotels & Resorts forecasts sales surpassing 2025, propelled by a robust surge in the Canary Islands (20 % annual growth) and Andalusia. The chain records double‑digit increases in its main source markets—United Kingdom, Germany and Spain—and anticipates sustaining this growth into the upcoming summer season.
VP Hoteles predicts a 5 % rebound among individual clients, while warning of a mixed scenario due to slowing international demand contrasted with strong domestic coastal activity. The group offsets this cooling by intensifying its events and conference agenda and has prudently frozen rates amid current economic and geopolitical uncertainty.