STR Global on Wednesday reported that increased occupancy led to double-digit RevPAR growth in Lisbon, the Balearic Islands and the Canary Islands year-to-November 2011.
Occupancy was the main driver of RevPAR improvements across Spain, with only two markets – Valencia and Zaragoza – reporting declining levels. Portugal’s RevPAR performed better due to increasing average daily rate with the exception of Porto, which saw occupancy and RevPAR declines.
“The good news is that RevPAR performance stayed overall positive, and it will be interesting to see how the 2012 hotel performance will develop,” said Elizabeth Randall, managing director of STR Global. “Our latest forecast for Madrid shows RevPAR growth is expected to reach 1.3% in 2012.”
The Spanish hotel market grew its RevPAR by 6.8% through November to €55.49. During the same period, the Portuguese RevPAR growth increased by 8.8%, resulting from an increase in ADR of 5.8% and occupancy reaching 60.6%.
The best performing markets benefited from increasing demand growth, compared to the previous year, while ADR remained relatively flat. In the Canary Islands, demand growth reached 14.4% through November, seconded by Marbella (13.6%) and Balearic Islands (10.1%).
New hotel supply remained low across most of the Iberian Peninsula. The only markets experiencing new supply growth were Malaga (4.4%), Marbella (2.4%) and Madrid (1.5%), which had a knock-on effect on ADR.
Looking at the four best performing markets, including Madrid, on a longer-term seasonally adjusted RevPAR levels in the last three years shows that the overall trend in 2011 remained positive compared to 2009 and 2010. The political unrest in North Africa helped the Canary Islands grow its RevPAR mainly during the first quarter of 2011, while the major cities grew their RevPAR during the second and third quarters of the same year. Following a positive autumn, the three-month, year-on-year RevPAR growth remained positive in all five markets.