Lorraine Williamson
Spain still sells itself as Europe’s easy escape: sunshine, short flights, reliable infrastructure. But the numbers behind that promise have shifted. The average price of a hotel room cited by El País now sits around €170 a night, up sharply from about €120 in 2019—a jump that many travellers feel as soon as they hit “pay now”.
Hoteliers insist this is not simple opportunism. They point to a cocktail of costs and a customer base that is changing faster than the country’s tourism slogans.
The price rise that doesn’t behave like “normal” inflation
Since the post-pandemic rebound, Spain’s hotel sector has rarely had to chase demand. A steady stream of international arrivals has helped hotels hold firm on rates, even as price pressures elsewhere have eased.
Official data shows hotel prices continuing to edge upwards: Spain’s Hotel Price Index was up 3.9% year-on-year in November 2025, while average revenue per occupied room (ADR) was €117.1 that month (a national average across categories and locations).
That doesn’t contradict the sticker shock in peak hotspots. It underlines the bigger story: Spain is no longer “cheap by default”, and in the places people most want to be, it can feel priced like a premium destination.
Energy, food, and the bills that landed in 2022
The sector’s first big justification is blunt: operating costs surged after 2022, with energy a major line item for a business that runs air conditioning, hot water, laundries, kitchens and lifts all day. El País links the steepest cost acceleration to the period after Russia invaded Ukraine, when energy prices spiked across Europe.
Food and drink costs followed the same upward path, squeezing hotels that offer half-board and all-inclusive packages. Even where energy has stabilised, hotel owners argue the higher “baseline” never really disappeared.
Wages are the bigger, permanent shift
The second wave is labour. After years of relatively low pay in hospitality, collective agreements have pushed wages up in several regions, including multi-year rises in the Balearics that El País describes as substantial. Staff costs can be the largest single expense in a hotel, and unlike energy, they don’t drop back when markets calm down.
This matters because it changes the psychology of pricing. If higher wages become structural, hotels stop talking about “temporary” surcharges and start pricing as if the old era has ended.
Spain is “good value” — if you’re arriving with a stronger currency
There’s another force shaping what tourists pay: who the tourists are. El País reports that around two-thirds of overnight hotel stays are now booked by foreign visitors, with an even stronger tilt in four- and five-star hotels.
The Banco de España has also highlighted a long-term move upmarket: over two decades, the share of hotel places in four- and five-star accommodation has risen from roughly a third to more than half.
Put these together, and the logic becomes clearer. If your customer is increasingly international—and often wealthier—your prices gradually follow that customer, not the domestic market.
Renovations, rebranding, and the quiet march to four stars
Spanish hotel groups and owners argue that many of today’s rates reflect investment: refurbishments, better facilities, and the steady replacement of older stock with higher-category rooms. El País points to major chains expanding and upgrading, effectively repositioning Spain’s mainstream offer closer to “premium”.
This is the part of the story that rarely fits into a holiday budget. When a destination upgrades at scale, travellers don’t just pay more for “a room”. They pay for a new market identity.
The weak point: when service doesn’t match the price tag
Here is where the mood turns. El País notes growing criticism that staffing levels and service quality are not always keeping pace with the rates being charged—an obvious risk when rooms reach €400–€500 a night in peak periods.
And it’s not just about grumbling online. If guests feel they’re paying luxury prices for a standard experience, loyalty weakens. That matters in a region where alternatives are always a short flight away.
Mediterranean competition is real — and it’s already pulling people away
Turkey is the clearest pressure point, repeatedly attracting record numbers with aggressive pricing and a familiar sun-and-sea proposition. El País also points to a surprising reversal: in some cases, Spaniards find that long-haul packages can undercut a high-season week in a coastal resort at home.
This is the limit of the “prices can rise forever” theory. Demand can look unstoppable—until it isn’t.
What travellers can do now
The same market shift that pushes rates up also creates gaps for those willing to be flexible:
-
Go shoulder season: late spring and early autumn can halve the pain without sacrificing weather.
-
Swap the hotspot for the next town along: the savings often come from geography, not hotel quality.
-
Look inland for city breaks: smaller cities still compete on price and often deliver better value.
-
Be strategic with star ratings: a strong three-star can beat a stretched four-star on service and comfort.
Spain’s hotel price surge is a choice as well as a consequence
Yes, costs rose. Yes, wages needed to rise. But Spain is also remaking its hotel sector around higher-spending international demand and a more upscale product mix. That may be good business—and it may keep investment flowing.
The question is what happens to everyone else: the Spanish family that used to holiday domestically by default, and the European visitor now comparing Spain with cheaper Mediterranean rivals. If price continues to climb faster than perceived value, the sector may discover that loyalty is the one thing you can’t refurbish.
Sources: