A surge in hotel supply has overtaken the Spanish hospitality market, boosting the number of projects in Spain’s pipeline.
According to the TOPHOTELCONSTRUCTION database there are currently 68 projects in the pipeline that will usher in 13,196 new rooms. The majority of these projects—51 percent, to be exact—fall into the first class category, while the other 49 percent is considered luxury. Much of this growth will happen in the coming year, with 44 percent of the projects slated to be completed and make their debuts during 2018.
Supply Growth in Spain
Spanish hotels have enjoyed quite a surge in direct bookings. In fact, experts say that booking through third party sites are actually expected to drop below 50 percent within the next three years. Currently, the contribution of third party sites is at roughly 57 percent.
This rising supply in hotel rooms has lead to market saturation. Market saturation in hospitality often means that hotels must innovate, and Spain is no exception. Spanish hotels have turned their lobbies into social spaces. They have also have opened terraces so guests can mingle there as well. This innovation started in other markets where saturation was high and has now spread to Spain.
Younger and modern travelers often want to hotel experiences that feel local, authentic, social and memorable. Spanish hotels must now work to satisfy that demand, especially with a growing number of hotel options for guests to choose from.
Spanish Hotel Market
Last year, roughly 84 million tourists visited Spain. Overall, tourism have flocked to Europe as of late, boosting the fortunes of the continent’s hospitality industries. Experts have reported a rise in both occupancy and room rates.
Spain is no exception, which makes the ongoing competition for guests a high stakes one, especially with visitors to the country migrating a bit from online travel agencies to direct bookings. While direct booking websites often receive more traffic, hotels prefer to book directly from their websites because it gives them more information and interaction with guests.
Let’s take a look at a few other projects currently underway in Spain: