Spanish hotels set a new July record for overnight stays, even as average room prices rose 7%. Foreign tourists drove growth, while domestic demand slipped. The sector faces limits in capacity and rising costs.
Spanish hotels reached a new milestone in July, recording the highest number of overnight stays ever for that month, according to the latest data from the INE. Despite a sense that the sector is nearing its capacity in popular destinations, the industry managed to offset stagnating visitor numbers with significant price hikes. The average cost for a double room climbed to nearly €157, marking a 7% increase compared to the previous year and setting a new record for July.
Tourist behavior diverged by origin. International visitors accounted for 30 million overnight stays, a modest 0.7% rise, while Spanish residents booked 14.8 million nights, reflecting a slight 0.4% drop. The overall growth in overnight stays was just 0.3% year-on-year, but this was enough to push the total to 44.8 million—an all-time high for July. The price surge, especially in three- and four-star hotels, has been a key factor. Four-star hotels averaged €164 per night (up 7.2%), and three-star properties reached €133 (up 6.8%).
Luxury accommodations saw less dramatic changes. Five-star hotels charged an average of €339 per night, only 0.3% higher than last year. Among Spain’s most expensive destinations, Marbella led with an average rate of €416 per night, a 22% jump. San Sebastián followed at €284 (up 14%), Chiclana de la Frontera at €234 (up 3.3%), and Estepona at €210, though Estepona saw an unusual 44% decrease.
The combination of high prices and crowded destinations has directly affected Spain’s main foreign tourism markets. The United Kingdom, Germany, and France together contributed 14.4 million overnight stays, making up 32.2% of the total. However, growth was minimal: UK visitors increased by just 0.6%, while German and French stays declined by 0.4% and 2.7%, respectively. This trend was partially balanced by gains from other countries, such as the Netherlands, which saw a 3.6% rise to 1.52 million stays, overtaking Italy in importance.
These shifts have had a notable impact on regional tourism. The Balearic Islands, which rely heavily on foreign visitors (94% of overnight stays), recorded the highest number of stays at 10.78 million, representing 24% of the national total. Yet, this figure was down 1.7% from July 2025—the largest drop among Spain’s top six regions for international tourism. Other regions with high shares of foreign guests include the Canary Islands (82%), Catalonia (74%), Madrid (62%), the Valencian Community (49%), and Andalusia (48%).
Rising room rates have translated into higher profits for hotels. The average revenue per available room, a key industry metric, climbed 6.6% year-on-year to €119.3, setting a new record. This figure is more than double the level seen in July 2021, during the post-pandemic recovery, and 55% higher than the pre-COVID peak in 2019 (€76.97). The trend of increasing prices and profitability echoes broader concerns about the impact of tourism on local communities, as highlighted in recent urban renewal efforts in cities like Barcelona, where investment in public housing aims to counteract tourist pressure.
Spain’s tourism sector remains a vital part of the national economy, but the current pattern of rising prices and limited capacity raises questions about long-term sustainability. The balance between profitability, affordability, and the quality of visitor experience will likely shape the industry’s next steps. As the country continues to attract millions of visitors each summer, the challenge will be to manage growth without undermining the appeal of its most popular destinations.
