Hotel rates in Spain register a moderate decline of 2% during the 2025 year-end period – which includes New Year’s Eve on December 31 and the nearest weekend – compared to the previous year, according to the Hotel Pricing Outlook report prepared by the consulting firm Simon-Kucher.
The study attributes this price correction to the configuration of the calendar, since the celebration of New Year’s Eve on Wednesday means that more vacation days are available to organize a getaway, which reduces part of the spontaneous demand that is usually concentrated on these dates.
At the national level, Madrid and Barcelona lead the way in terms of price reductions, with decreases of 8% and 10%, respectively. Despite this drop, Madrid remains among the European cities with the highest hotel rates and ranks fourth in the ranking, behind only London, Paris and Amsterdam. The British capital tops the list with an average rate of 364 euros per night, although it also recorded a year-on-year drop of 10%.
In contrast to the peninsular trend, the Canary Islands consolidated its position as the most expensive destination in Spain, with a median rate of 378 euros per night, a 10% increase over the previous year. Also noteworthy are the price increases in Alicante (+19%) and Valencia (+4%), while Seville (-2%) and Malaga (-4%) showed more moderate adjustments. For its part, the Balearic Islands maintained stable prices at the end of the year.
Simon-Kucher’s technical analysis points to greater stability in four-star hotels, while the most pronounced fluctuations, both upward and downward, are concentrated in economy category establishments.
The consulting firm points to the existence of a “commercial bifurcation” in the hotel sector: the luxury segment continues to show solid growth, while the economy brands suffer setbacks in both occupancy and average daily rate (ADR).
Looking ahead to 2026, the industry anticipates a “two-speed demand” scenario , which will force hotel chains to fine-tune their commercial and pricing strategies to adapt to an increasingly segmented market.
