The average price of a hotel room in Spain reached nearly 50% higher in May 2025 compared to 2019. This significant increase has been felt by both tourists and locals, as noted by experts in the tourism industry.
This is reported by Finway
Price Dynamics and Growth Factors
According to analytical data, the rise in hotel room prices in the country has shown a steady trend since 2017, interrupted only by a sharp decline in 2020 due to the COVID-19 pandemic and related travel restrictions. Following this period, the recovery was rapid: in just the last year, prices increased by an additional 7%, contributing to an overall jump of 46% from the 2019 level.
Experts attribute this increase to a combination of several factors. Firstly, limited construction of new hotels does not meet the growing demand. Secondly, recent government initiatives to restrict Airbnb listings aimed at addressing the housing shortage have also reduced the supply of accommodation for short-term rentals. This has put additional pressure on prices in the hotel sector.
Tourism Growth and Housing Implications
According to Eurostat, the number of tourists in Spain has increased by 70% since 2021, and this trend continues to strengthen. In certain regions, particularly the Balearic Islands, where tourism accounts for nearly half of the economy, there has been a sharp rise in housing costs, making it increasingly unaffordable for local residents. Research from the European Parliament confirms this issue.
“Spain is already on track to surpass last year’s tourism figures and welcome over 100 million tourists in 2025.”
The government has also introduced new rules for renters: as of June 1, 2025, a law will officially take effect that guarantees automatic renewal of rental agreements for another year (up to a maximum of three years) unless the owner provides written notice of their intention to terminate the agreement four months prior to its expiration. Renters have the right to remain in the property as long as they pay on time and take proper care of the property, even if the owner does not wish to extend the agreement.