Spanish Hotels set for Steady 2026 as Pricing Power Holds and new Supply Edges Higher

By HNR News Staff Reporter

Spain’s hotel sector is entering 2026 with resilient demand, modest supply growth, and pricing that is expected to outpace inflation. Industry risks include “higher-for-longer” borrowing costs, labor tightness, and regulatory shifts around short-term rentals, while macro indicators from UNWTO, the IMF, and the ECB frame a cautiously supportive backdrop.

Demand: Solid leisure base, modest normalization

Leisure-led demand that underpinned Spain’s outperformance since 2022 is set to continue in 2026, with analysts expecting flat-to-slightly higher occupancy and low‑to‑mid single‑digit nominal growth in room rates. UN Tourism said international travel was “on track to return to pre‑pandemic levels in 2024,” a milestone that has helped Mediterranean destinations sustain pricing power even as “revenge travel” fades. Spain’s combination of air connectivity, diversified source markets, and extended seasons along the coast continues to support year‑round performance, while city breaks in Madrid, Barcelona, Valencia, and Seville benefit from the gradual recovery of meetings and events.

Pricing and RevPAR: Growth above inflation, but slower

Spain’s hotels have leaned on average daily rate (ADR) to drive revenue per available room (RevPAR) since 2022. Industry trackers reported that Spain was among Europe’s top performers in 2023–2024, and operators expect that trend to carry into 2026, albeit at a slower clip as comparisons toughen. With supply still constrained in several prime markets and holiday‑rental rules tightening in some cities, ADR growth is set to outpace general inflation, keeping RevPAR on an upward path.

Supply and investment: Pipeline resumes, capital costs in focus

After years of limited openings and extensive renovations, net room supply in Spain is projected to rise modestly in 2026, led by upper‑midscale and lifestyle brands in urban and resort markets. Development appetite is tempered by financing costs and construction inflation. The European Central Bank reiterated in 2024 that it would keep policy rates “sufficiently restrictive for as long as necessary,” and while investors anticipate some easing as inflation cools, debt costs remain a swing factor for new projects and refinancing. Transactions are expected to pick up from subdued levels as bid‑ask spreads narrow, with value‑add resort assets and prime city hotels drawing the most interest.

Cities versus coasts: Business travel still rebuilding

Urban markets should see incremental gains from corporate and group travel in 2026, supporting midweek occupancy and boosting shoulder‑season demand. Resort destinations are expected to retain their lead in rate growth, helped by strong Northern and Western European source markets and extended stays. Barcelona’s tighter stance on tourist apartments and broader scrutiny of short‑term rentals across Spain may also shift some demand back to hotels during peak periods, particularly in city centers and heritage districts.

Costs, labor and margins: A delicate balance

Operating costs remain the main headwind. Energy prices have retreated from their 2022 peaks, but utilities, food and beverage inputs, and wages remain elevated versus 2019. Labor availability is improving, yet staffing gaps persist in housekeeping, kitchen and maintenance roles. Profitability in 2026 will hinge on continued pricing discipline, productivity investments (including digital check‑in and dynamic housekeeping), and selective cost relief from suppliers. With capital expenditures still focused on refurbishment and sustainability, operators are prioritizing projects that lift ADR and reduce operating expenses.

Macro context and risks

The International Monetary Fund cautioned in its outlook that “global growth remains slow and uneven,” underscoring sensitivities to energy markets, geopolitics and consumer confidence. Spain’s tourism exposure is broad, but demand could soften if source‑market economies weaken. Air capacity and fares, climate‑related disruptions, and local regulations on holiday rentals remain key variables. Conversely, any acceleration in eurozone rate cuts would lower financing costs and could unlock deferred development and deal activity.

What to watch in 2026

– Rate resilience vs. consumer pushback in peak months

– Business travel mix in Madrid and Barcelona, and convention calendars

– Impact of municipal rules on tourist apartments in major cities

– Energy and wage trajectories, and their effect on margins – Pipeline delivery timing for resort redevelopments and lifestyle openings