The hotel market in Spain shows a higher concentration of supply

The dynamism of economic activity in Spain and the increase in consumer spending will lead to an increase in hotel sector turnover of around 6% this year, according to a report by the consultancy firm DBK. The study highlights a progressive increase in the concentration of supply.

The consulting firm estimates that the revenues of the accommodation sector in our country will exceed 17,000 million euros in 2018, a figure that represents an increase of 6% compared to the results of the previous year. DBK explains that this evolution is marked by the improvement of consumption indicators in general.

According to the 2017 analysis, the city hotels showed greater dynamism, after experiencing growth of 11.1%, than the holiday, whose turnover was three points lower, at 8.6%. In any case, the revenues of the latter account for nearly two-thirds of the total.

On the other hand, the study indicates that, although the sector still shows a notable atomization, there is a progressive increase in the concentration of supply. The five major chains achieved a combined market share of 21% in 2017, while the top ten brought together 32%.

The number of travelers staying in hotel establishments increased by around 3.7% in 2017, with the growth of foreign guests rising to 5.9%, compared with 1.4% for Spaniards. A progressive decrease in the average length of stay continues to be seen in both segments, as total overnight stays grew by 2.7%.

Despite the growth forecast for 2018, the market will experienceá a slight slowdown, derived from the recovery of alternative destinations, which in recent years have been affected by political instability and the threat of terrorism.

In absolute numbers, a total of 16,774 establishments were open to the public in last year's high season, offering 1.80 million hotel beds, 0.6% more than in the previous year. While hostels fell by 1.8%, hotels increased by almost one point, accounting for 89.5% of the total.