How Will Summer Holidays Impact Hotel Performance in Spain & Portugal?

How Will Summer Holidays Impact Hotel Performance in Spain & Portugal?



July and August are two of Spain’s and Portugal’s most important hotel performance months with travelers spread across the two countries on summer holidays. However, even with expanded vaccinations, economic reopening and travel sentiment, summer 2021 will be far from normal in the Iberian Peninsula.

Infographic - Source - STR - Spain and Portugal Hotel Occupancy

How will summer holidays impact hotel performance in Spain & Portugal?

Excerpt from STR

July and August are two of Spain’s and Portugal’s most important hotel performance months with travelers spread across the two countries on summer holidays. However, even with expanded vaccinations, economic reopening and travel sentiment, summer 2021 will be far from normal in the Iberian Peninsula.

Before we get into some forward data and address the hotel performance expectations for the summer, let’s add some historical context as our starting point.

Occupancy Timeline

Thanks to limited domestic demand, Spain and Portugal hotel occupancy percentages have improved from low points of the past year but remain far behind pre-pandemic levels. The lifting of travel restrictions and lockdown measures will provide a much needed influx of guests for hotels coming back online.

In April 2021, Spain posted a 25.6% occupancy level, which was slightly below March (26.4%) but was the country’s second highest occupancy level since August 2020.

Portugal, on the other hand, saw occupancy reach 14.4% in April, its highest level since October 2020 (23.1%). 

ADR improvement in leisure destinations

During the first quarter of the year, leisure markets in the region saw rate growth, even from 2019 levels, because of domestic leisure business and less competition for those guests.

Marbella Area’s ADR for Q1 2021 was EUR186.04, up from EUR120.34 in Q1 2020 and EUR122.01 in Q1 2019.

The Balearic Islands’ ADR was EUR98.64, up from EUR81.84 in Q1 2019 and EUR77.37 in Q1 2020.

Algarve, one of the most popular leisure destinations in Portugal, posted Q1 2021 ADR at EUR73.30 after coming in at EUR62.65 in Q1 2020 and EUR62.57 in Q1 2019.

Click here to read complete article at STR.

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© 2021 Hotel News Resource



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