Spain Hotels & Chains Report 2022

As we move past the pandemic, hotels have been experiencing a sharp upturn in performance, almost reaching 2019 levels.

The march and rise of the brands and branded hotels seem inevitable.

The question remains; however, how many brands is too many and how good are we as an industry at explaining to the clients what each stands for?

The resilience of the Spanish hotel market in the aftermath of the pandemic has highlighted Spain’s strength as a tourist destination. With this in mind, many chains have seen fit to increase their presence in the country by adopting different strategies to gain competitive advantage, whether over other chains or independent owners and management.

Key Points

Hotel Chains Gaining Market Presence

Both the number of chain hotels and that of chain rooms have increased in the last year with a corresponding rise in market penetration in both areas.

New Expansion Strategies Pursued by Hotel Chains

Some chains are pursuing new asset-light expansion strategies to increase their market share in a profitable and efficient way.

Increasing Presence Through New Brands

Around fifty new brands have emerged in the Spanish hotel market in the last year with a greater weight of domestic brands.

New Players as Market Leaders

In our last report we anticipated that the purchase of Apple Leisure Group by Hyatt would have an impact on the list of hotel chains with the largest presence in Spain. Hyatt now ranks fifth in the global ranking.

Investment recovers considerably but may be replaced by caution for the rest of the year

In 2021, hotel transactions almost tripled the previous year’s figures and exceeded those of 2019. In the first half of 2022 hotel investment has reached €1,520 million. Although being positive figures, experts recommend taking a cautious stance for the rest of the year.

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To read this report in Spanish, please click here.