According to American Express Global Business Travel, hotel rates in Madrid are predicted to increase at a slower rate compared to Barcelona in 2024. This is due to the significant growth of new hotels in Madrid to accommodate the increasing number of tourists.
The yearly poll predicts that accommodation costs in Madrid will go up by 4.5%, while rates in Barcelona are expected to rise by 9% in the upcoming year.
7.5 million tourists
Madrid’s strategy to draw in 7.5 million visitorsfi
Luxury hotels with a five-star rating are successfully vying for the high-end tourism market, which was previously dominated by cities like Paris, London, and Milan in Europe. However, Barcelona’s presence in this sector has weakened due to stricter building regulations.
According to a report by JLL, Madrid is projected to increase its number of luxury hotel rooms to over 2,700 by the end of 2023, which is a 50% increase from ten years ago.
According to a report from Colliers, there are currently 33 new hotels being developed in Spain’s capital city, with half of them targeting the upscale market. This is in contrast to 13 upcoming projects in Barcelona.
The construction of new hotels in the city center of Barcelona has been prohibited by local authorities since 2017, resulting in a halt in supply.
According to Amex GBT, Madrid is experiencing a period of growth and has more hotels available to meet the demand, resulting in lower rates compared to other regions like Barcelona.
According to Amex GBT, hotel prices in cities like Buenos Aires, Boston, and Bangalore, India are projected to increase by double-digit amounts, in accordance with the rise in local inflation and the ongoing growth in both business and leisure travel post-pandemic.
The rates for hotels in top business destinations such as Paris and Chicago may increase by 11% and 12.6% next year.
A study conducted by Reuters analyzed a large number of hotel transactions and economic data from the International Monetary Fund to determine hotel rates in over 80 major cities.