STR Global, reported double-digit revenue-per-available-room (RevPAR) growth in Lisbon, the Balearic Islands and the Canary Islands year-to-November (YTD) 2011 compared to the same time frame in the year prior
Occupancy was the main driver of RevPAR improvements across Spain, with only two marketsValencia and Zaragozareporting declining levels. Portugal's RevPAR performed better due to increasing average daily rate (ADR) with the exception of Porto, which saw occupancy and RevPAR declines.
The Spanish hotel market grew its RevPAR by 6.8 percent YTD to €55.49. During the same period, the Portuguese RevPAR growth increased by 8.8 percent, resulting from an increase in ADR of 5.8 percent and occupancy reaching 60.6 percent.
The best performing markets benefited from increasing demand growth, compared to the previous year, whilst ADR remained relatively flat. In the Canary Islands, demand growth reached 14.4 percent YTD, seconded by Marbella (13.6 percent) and Balearic Islands (10.1 percent).
New hotel supply remained low YTD across most of the Iberian Peninsula. The only markets experiencing new supply growth were Malaga (+4.4 percent), Marbella (+2.4 percent) and Madrid (+1.5 percent), which had a knock-on effect on ADR.