Spain Hotels & Chains Report 2021

Key Findings 

Market Impact of COVID-19: 

• The pandemic caused a significant slowdown in the growth of hotel chains in Spain, with many development projects delayed or halted. Despite this, Spain remains one of the world’s top tourist destinations, welcoming over 80 million international tourists annually in previous years. 

• The overall number of chain hotels in Spain slightly increased to 2,518 in 2021, a 1% rise from 2018. Chain room supply grew by a similar margin, reaching 394,698 rooms. 

Chain Penetration and Growth: 

• Chain penetration in Spain stabilized around 35% by the number of hotels and 58% by the number of rooms, maintaining the levels seen in previous years. 

• The number of hotel brands operating in Spain increased by approximately 17% compared to 2019, driven by the entry of new international brands such as Four Seasons, Hard Rock, Ikos, and Anantara. 

Market Leaders: 

• Domestic Chains: Meliá Hotels International leads with 98 hotels and 28,272 rooms, followed by Barceló Hotel Group (74 hotels, 18,335 rooms), and Eurostars Hotel Company (140 hotels, 14,481 rooms).

• International Chains: Marriott International, Accor Hotels, and NH Hotel Group dominate the market, with Marriott leading at 93 hotels and 13,429 rooms. 

Investment Trends: 

• Hotel investment in Spain dropped by 61% in 2020 compared to the previous year, with a total transaction value of €960 million. However, the first half of 2021 saw a resurgence, with investments exceeding €1.09 billion, signaling a potential rebound as the market recovers. 

• The majority of transactions involved 4-star and 5-star hotels, reflecting investor focus on high-quality assets. 

Geographical Distribution: 

• The Balearic Islands, Catalonia, and Andalusia lead in terms of chain hotel presence, with the Balearic Islands having the highest number of chain hotel rooms (79,790). 

• Madrid and Barcelona remain key urban markets, with Madrid adding 17 new hotels and 2,195 rooms to its pipeline, making it one of the most dynamic cities for hotel development. 

  Spain’s hotel industry, while impacted by the pandemic, remains resilient with steady growth in branded hotels. The ongoing recovery, coupled with a robust pipeline of new developments, suggests a positive outlook for the future. Spain’s strong tourism infrastructure and the continued interest from both domestic and international investors are key drivers of this recovery. 

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