That in Spain hotel prices have skyrocketed after the pandemic is evidence confirmed by anyone who has made a reservation in recent times…, and also by statistics. The escalation is widespread in the main tourist destinations in the world, but what the figures from the main national hotel chains reflect is that Spain presents the largest increases in rates this year. With a prominent presence in Europe, Asia and America, Meliá Hotels International and Minor Hotels Europe & Americas (formerly NH) prove to be a reliable thermometer for comparison.
According to data from the National Institute of Statistics (INE), The average price per hotel room in Spain stood at 150.7 euros in the first nine months of 2024which represents an increase of 7.4% compared to the same period in 2023 (140.5 euros), according to official data from the National Institute of Statistics (INE). This is the highest level in history and exceeds by 33.5% what it presented in the same period of 2019, before the pandemic (112.9 euros).
The growth in demand and the repositioning of hotels lead to price increases
This increase in prices occurs in a context in which demand in Spain is on track to close the best year ever, with 73.9 million international tourists until September, which is 10.9% more than a year before. Of them, 49.3 million stayed in hotels (+8.6%).
The price trend is even more pronounced in Meliá and Minorreflecting that the highest-end establishments (4 and, above all, 5 stars) are transferring the largest increases in rates in response, on the one hand, to the increase in costs and, on the other, to the investments that are making to reposition their hotels.
The summer yields unprecedented data. With an average occupancy of 72.55% (-0.41 points), Meliá placed its ARR (average rate per room) globally at 186.47 euros in owned and rented hotels in the world between July and September, 11.02% more than in the third quarter of 2023.
In Spain, with an occupancy rate of 80.78% (-1.77 points), the ARR reached 197.45 euros, 15.59% more. This is the largest increase among all the countries in which the chain operates (and there is data), with the exception of France, where it rose 19.41%, up to 259.4 euros. Now, the French case is largely linked to the celebration of the Paris Olympic Games.
Meliá has increased prices by 17.45% in urban destinations in Spain during the summer, up to 188.62 euros, while in the resorts the increase is 14.36%, up to 203.68 euros.
The escalation of rates in the Spanish market has caused Meliá hotels to have an ARR above that of its own and rental establishments between July and September in countries such as the United States, where it stood at 187.72 euros after contracting 3.5%. In the summer of 2023, the comparison was diametrically opposite: the United States offered a price of 194.55 euros and Spain 170.81.
The ARR growth rate in Spain is also causing the difference with other traditionally more expensive markets to narrow considerably. This is the case of the United Kingdom, where it only increases 1.80% and sets the rate at 201.96 euros. In Italy, for its part, Meliá hotels increased their ARR by 8.30%, up to 367.56 euros. Meanwhile, in Mexico the decline in prices continues and in the third quarter they fell 5.53%, to 147.58 euros, with an occupancy rate of 50.41% (+0.85 points); and in the Dominican Republic it improved by 11.21%, up to 127.73 euros.
If the hotels that Meliá is under management (in addition to ownership and rental) are also included, the ARR worldwide amounts to 157.23 euros, 10.33% more. This statistic includes other markets in which only third-party establishments operate, such as Cuba (the ARR fell 51.98%), Indonesia (+8.49%), Brazil (+26.34%), China (- 3.14%) or Vietnam (-12.41%).
In the case of Spain, where it has 144 hotels (16 owned, 45 rented, 58 managed and 25 franchised)the average rate per room grew by 12.30%, up to 186.58 euros. This amount would be slightly below the 187.72 euros in the United States – a year ago the difference was almost 28 euros.
The summer data of the chain he directs Gabriel Escarrer They continued the global increase in ARR accumulated in the first semester. In the first nine months of the year, in which it registered an average occupancy of 70.10% in its owned or rented hotels around the world, the rate grew by 9.65%, to 172.96 euros. Including assets under management, the variation is 7.93%, up to 142.06 euros.
In the case of Meliá’s Spanish hotels that are under its control or for rent, it stood at 174.78 euros, 16.51% -more than any other country-; and in the comparison that also includes those managed it reached 160.85 euros, 13.15% more – only Venezuela rose more, 15.05%. In the United States, the ARR between January and September is still significantly higher, at 182.59 euros (-1.40%).
Reflection in results
Minor Hotels Europe & Americas, for its part, established the ADR (average daily rate for a room) of its hotels in the world grew by 7.3% between July and September, up to 152 euros. The old NH also has the market in Spain in which prices increase the most. Thus, with an occupancy of 78% (three points more than a year before), the rate increased by 15%, up to 164 euros. It far exceeded the increases recorded in Central Europe (10%, up to 124 euros), Benelux (5%, up to 165 euros) and in Italy (2%, up to 205 euros). In Latin America, on the contrary, the ADR decreased by 7% in the summer, to 78 euros.
In the first nine months, the firm that Gonzalo Aguilar has led since October 1 along with the outgoing CEO, Ramón Aragónes (he will leave his position on December 31), raised the global ADR by 6.2%, to 146 euros. In Spain, with an occupancy of 75% (two points more), the rate grew by 11%, to 152 euros. It thus closes the gap with Italy, where it rose 4%, to 192 euros. In Central Europe it registered an increase of 7%, up to 123 euros, and in Benelux of 2%, up to 160 euros. Latin America, meanwhile, increased 3%, up to 83 euros.
The increases in rates and occupancy are reflected in a key indicator for the hotel sector, RevPAR, that is, the revenue per available room. This ratio measures the profitability of hotels. The RevPAR of all Meliá establishments in the world (357) increased by 10.70% between July and September, up to 100.83 euros per room. In Spain the growth was 10.74%, up to 151.9 euros. This percentage was surpassed by Venezuela (+26.23%), Vietnam (+20.19%), France (+15.16%) and Germany (+14.45%). In the United States it remained stable (+0.18%) with a rate of 153.32 euros, therefore slightly above Spain.
In the case of Meliá owned and rented establishments, the overall increase in the third quarter reached 10.40%, up to 135.28 euros, and in Spain it reached 13.12%, up to 159.51 euros. Thus, in this parameter the Spanish hotels of the Balearic chain surpass the American ones. Venezuela, France and Germany continue to have higher growth rates.
In the first nine months of the year as a whole, Meliá’s RevPAR in the world stood at 87.19 euros, 11.93% more than in the same period of 2023. The group of establishments in Spain improved by 14.11%, up to 120.71 euros. Only Vietnam (+23.42%), Dominican Republic (+21.08%), Indonesia (+16.33%) and Venezuela (+16.04%) offer greater increases. Considering only owned and rented hotels, the total RevPAR increased by 12.35%, up to 121.24 euros. In Spain, it stood at 130.96 euros, 16.49% more. The Dominican Republic exceeded this percentage (+21.08%).
Minor Hotels Europe & Americas presents an increase in RevPAR in its entire hotel plant of 8% between January and September, up to 101 euros, and In the third quarter the increase was 9%, up to 110 euros per room.
All this data translates into growth in operating results. Meliá increased its income by 4.5%, to 1,544.1 million, its ebitda (gross operating result) by 10.8% (428.6 million) and its net profit by 28.3% (139.4 million) . Minor, for its part, earned 10.9% more (1,789 million), reinforced its ebitda by 11.3% (498 million) and earned 46.3% more (146 million).
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