With tourist spending levels being sustained and international demand gradually approaching pre-pandemic levels, there is a strong sense of optimism for the medium-term outlook, supported by on-the-books data and favourable guest sentiment.
Despite the impact of increasing utility and labour costs on profit margins, we expect that the elevated level of top-line revenue will result in higher year-end GOP in terms of gross value.
This should be particularly noticed in the Luxury segment, where 95% of surveyed operators are optimistic or very optimistic about the performance of these hotels in the next 12 months.
Malaga is consolidating its position as the national urban destination that is currently attracting the most operators, ahead of Madrid, Barcelona and Lisbon.
In terms of holidays, the island of Majorca and the Costa del Sol continue to be the coastal destinations of greatest interest in the expansion plans of these companies.
Hotel operators believe that luxury hotels and resorts will perform very well this year due to the impact of the high levels of ADR being achieved during the year and the outlook for the year-end close.
TRENDS IN CONTRACT TERMS
New contracts are increasingly considering pandemic clauses, inclusion of ESG reporting and Key Money.
Since last year, 33% more operators have offered more hybrid contract models, which include fixed and variable rents. Conversely, 21% of operators are offering fewer fixed rents, despite the volume of landlords considering this as their only contractual option.
TREND IN THE HOTEL SECTOR
Regarding the pipeline of hotel projects, 29% of them have been delayed or are on standby, with an average delay of between 1-12 months, mainly due to rising construction costs and financing problems.