According to the latest hotel barometer published by STR and Cushman & Wakefield, the Canary Islands have not only consolidated their position as the preferred destination for travellers, but have also taken a clear lead in the three metrics that define the sector’s financial health: occupancy, average daily rate (ADR) and revenue per available room (RevPAR).
A dominant start to the year
The strength of the Islands’ tourism sector is particularly evident in occupancy figures. During the first quarter of 2026, hotels in the archipelago recorded an average occupancy rate of 84.5%, far exceeding the national average of 68.9%. This gap highlights the exceptional demand for the destination, driven largely by its reputation as a year-round “climate haven” for European travellers, especially during the winter months.
While other regions across Spain have shown steady but moderate performance, none have matched the intensity of demand seen in the Canary Islands. Traditional competitors such as the Balearic Islands and the Costa del Sol, along with major urban destinations like Madrid and Barcelona, have been unable to keep pace.
Cities such as Zaragoza and Málaga complete the national podium in terms of growth and stability, yet remain significantly behind in overall performance. Even key destinations like Seville, Madrid and Valencia have struggled to surpass the 75% occupancy threshold, reinforcing the archipelago’s clear advantage at the start of the year.
Rising prices without weakening demand
One of the most striking aspects of the report is the sustained increase in hotel prices. Across Spain, the average daily rate rose to €143.40, representing a 4% increase compared to the previous year. However, the Canary Islands have once again positioned themselves well above this average, reaching €187.10 per night.
What makes this figure particularly significant is that the rise in prices has not dampened demand. On the contrary, it reflects the resilience and strength of the destination’s brand. Tourists continue to choose the Islands despite higher costs, confirming their status as a premium yet accessible destination.
Only Marbella comes close to these price levels, with an ADR of €178.40, while Barcelona (€166.60) and Madrid (€161.40) remain clearly below the archipelago’s figures.
Profitability well above the national average
The Islands’ leadership is most evident in RevPAR, widely regarded as the most accurate measure of hotel profitability. In this category, the Canary Islands once again stand out, reaching €158.2—substantially higher than the national average of €98.8.
In practical terms, this means that a hotel room in the Canary Islands generates, on average, around €60 more revenue than in the rest of Spain. Even Madrid and Barcelona, buoyed by business travel and the MICE segment, remain at approximately €119, underscoring the gap between the archipelago and its mainland competitors.
A strong brand, but rising challenges
Industry experts attribute this performance to the sustained strength of the “Canary Islands” brand in international markets. However, they also point to emerging challenges, particularly the need for hotel operators to manage rising operational costs without compromising profitability.
Despite these concerns, the outlook for the remainder of 2026 remains optimistic. Analysts expect continued growth driven by strong international demand, with the archipelago likely to maintain its leading position as one of Spain’s most profitable tourism destinations.
Outlook for the year ahead
According to sector specialists, the current figures are often a reliable indicator of what lies ahead for the broader Spanish tourism market. The strong performance of the Canary Islands in the early months of the year is widely seen as a precursor to a successful high season across the mainland.
With demand remaining robust and price growth stabilising at sustainable levels, Spain’s hotel sector is expected to enjoy a particularly dynamic summer in 2026. Alongside the archipelagos, cities such as Seville and Valencia are also showing encouraging signs, recording double-digit revenue growth.
Even so, the Canary Islands have set the benchmark—demonstrating that, in 2026, neither Madrid nor Barcelona can rival their combination of demand, pricing power and overall profitability.
