OVERVIEW Hotel Market 2019 Urban vs Vacation segment Rise of average rates as a growth driver Introduction 2.5% vs. 2018 This report offers an overall overview of the hotel market’s behaviour in Spain during 2019, focusing on the most important tourist destinations. Results for the urban and vacation hotel segments are contrasted throughout the report, to provide a differentiated analysis of the two sectors. EVOLUTION OF THE VACATION VS. URBAN REVPAR 2008-2019 (BASE 100) 180 159 160 133 140 120 Spain reached a record high 100 in 2019 RevPar +3.2% 80 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 RevParVacation Vacacional RevPar RevParUrban UrbanoRevPar Source: Exceltur The urban segment experiences greater Progressive gap reduction between the extraordinary behaviour of the vacation sector over the last 10 growth than vacation segment years vs. an urban segment which was notably affected by the 2008 crisis. RevPar Urb. +7.3% vs. Vac. +0.1% 01 HIGHLIGHTS 2019 Urban Vacation MAIN INDICATORS MAIN INDICATORS +5.2% ADR +7.3% RevPar +2.0% Occupancy +6.2% +1.1% ADR +0.1% RevPar -1.0% Occcupancy -2.1% (€98.8) (€72.8) (73.7%) Overnight stays (€96.4) (€75.1) (77.9%) Overnight stays GROWTH DRIVERS PROFITABILITY GROWTH IN THE BALEARICS AND INLAND DESTINATIONS Foreign demand increase (International overnight stays in Madrid +8.8%; in Barcelona Growth in the Balearics resulting from the positive evolution of ADR for repositioned hotel (ADR +7.4%, in Seville +8.0%...). +2.1%). Remarkable increase of profitability in Galician cities. Positive evolution of overall Andalusian vacation destinations. Promotion of heritage cities resulting from a growing national demand (Granada, Salamanca, Different results in the region of Valencia, growth in the Costa Valenciana and negative in Costa León, Burgos, Pamplona, Valladolid…). Blanca (RevPar Benidorm -3.9%). Influence of the excellent moment of tourism in Madrid on peripheral cities (Ávila, Toledo, Recovery of destinations in Catalonia, hampered by the 2018 political context. Segovia, Cuenca…) DEMAND DECREASE GROWTH SLOWDOWN IN THE ISLAND’S CITIES • Recovery of competing “sun and beach” destinations in the Mediterranean (Turkey, Egypt…). • Decrease of foreign demand coming from traditional source markets (-6.3% German overnights, • Drop in demand and profitability in cities of the Canary Islands. -5.7% British, -7.4% Nordics). • Decrease of demand in Palma, although maintaining RevPar levels. • Special impact on the Canary Islands, aggravated by Thomas Cook’s bankruptcy and the worsening of air connectivity, with the RevPar falling on all islands except Lanzarote. REVPAR 02 PERFORMANCE RANKING BY DESTINATION RANKING BY DESTINATION Urban Vacation TOP PERFORMERS TOP PERFORMERS (% RevPar variation) (% RevPar variation) Santiago de 3 Compostela 1 La Coruña 4 Barcelona 1 Costa Barcelona 4 Costa Brava 3 Torremolinos 2 Valencia 2 Benalmadena Costa de la Luz 5 Madrid 5 Huelva RevPar 73.0 RevPar 73.5 RevPar 49.7 RevPar 56.2 RevPar 41.9 RevPar 67.7 RevPar 42.2 RevPar 108.9 RevPar 80.8 RevPar 106.5 %var 9.4% %var 7.8% %var 6.4% %var 5.8% %var 12.5% %var 11.9% %var 11.3% %var 10.1% %var 9.6% %var 9.4% RevPar %var RevPar %var RevPar %var RevPar %var 6 Granada 49.9 8.4% 12 San Sebastián 101.7 4.8% 6 Marbella 102.4 4.4% 12 Tenerife 85.0 -0.1% 7 Seville 76.5 7.7% 13 Zaragoza 34.9 4.0% 7 Lanzarote 78.4 4.3% 13 Ibiza-Formentera 104.7 -0.4% 8 Málaga 78.0 6.0% 14 Palma de Mallorca 85.7 1.0% 8 Costa Daurada 57.1 4.3% 14 Costa Blanca 55.5 -2.9% 9 Bilbao 73.3 5.7% 15 Santander 56.0 1.0% 9 Island of Majorca 80.3 3.5% 15 Costa de Almería 49.0 -3.5% 10 Salamanca 35.0 5.5% 16 Cordoba 48.4 -0.8% 10 Minorca 81.1 1.1% 16 Gran Canaria 83.7 -4.4% 11 Alicante 57.2 5.2% 17 Las Palmas de Gran Canaria 55.7 -6.3% 11 Costa de la Luz de Cádiz 65.9 0.1% 17 Fuerteventura 66.3 -12.2% Source: Exceltur Source: Exceltur REVPAR - CATEGORY REVPAR - CATEGORY Urban segment Vacation segment TOTAL TOTAL 72.8 € 75.1 € + 7.3 % + 0.1 % RevPar €138.2 RevPar €79.9 RevPar €59.6 RevPar €130.7 RevPar €78.7 RevPar €60.3 %var +8.0% %var +6.9% %var +6.0% %var -0.6% %var -0.8% %var +0.6% Fuente: Exceltur 03 KPIs SPAIN 2019 KPIs | MAIN DESTINATIONS Urban 1. MADRID 2. BARCELONA ADR (€) 104 (+8%) ADR (€) 134 (+7%) Occ (%) 78% (+2%) Occ (%) 81% (+3%) RevPar (€) 81 (+10%) RevPar (€) 109 (+10%) 9 12 13 The urban segment was 10 the main growth driver of 3. PALMA MALLORCA 4. SEVILLE KPIs in 2019 2 ADR (€) 110 (+4%) ADR (€) 97 (+5%) 14 Occ (%) 79% (+3%) Occ (%) 78% (-3%) 11 RevPar (€) 86 (+1%) RevPar (€) 76 (+8%) 1 3 6 5. GRANADA 6. VALENCIA OTHER DESTINATIONS RevPar ADR (€) 70 (+4%) ADR (€) 88 (+8%) 8 9. La Coruña +13% Occ (%) 71% (+4%) Occ (%) 77% (+4%) 4 10. Santiago de Compostela +11% RevPar (€) 50 (+8%) RevPar (€) 68 (+12%) 5 7 11. Salamanca +6% 7. MALAGA 8. ALICANTE 12. Bilbao +6% ADR (€) 99 (+5%) ADR (€) 77 (+3%) 13. San Sebastián +5% Occ (%) 79% (+1%) Occ (%) 74% (+2%) RevPar (€) 78 (+6%) RevPar (€) 57 (+5%) 14. Zaragoza +4% Source: Exceltur KPIs | MAIN DESTINATIONS Vacation 11 10 CANARY ISLANDS 1. TENERIFE 2. GRAN CANARIA PENINSULA 17 ADR (€) 105 (+2%) ADR (€) 102 (-2%) 4 Occ (%) 81% (-2%) Occ (%) 82% (-3%) Important growth RevPar (€) 85 (-0%) RevPar (€) 84 (-4%) in peninsular 3 1 destinations compared 2 3. FUERTEVENTURA 4. LANZAROTE 9 to the slowdown in the ADR (€) 90 (-2%) ADR (€) 93 (+6%) Balearic and Canary 12 Island Occ (%) 74% (-10%) Occ (%) 85% (-2%) 16 8 RevPar (€) 66 (-12%) RevPar (€) 78 (+4%) 13 14 15 OTHER DESTINATIONS RevPar BALEARIC ISLANDS 5. MAJORCA 6. IBIZA-FORMENTERA 8. COSTA DEL SOL 9. COSTA BLANCA ADR (€) 100 (+4%) ADR (€) 132 (-1%) ADR (€) 99 (+3%) ADR (€) 76 (-3%) 12. Costa de la Luz -Huelva +6% Occ (%) 80% (-1%) Occ (%) 80% (+0%) Occ (%) 76% (+1%) Occ (%) 73% (-0%) 13. Costa de la Luz - Cádiz +0% 7 RevPar (€) 80 (+4%) RevPar (€) 105 (-1%) RevPar (€) 74 (+4%) RevPar (€) 56 (-3%) 14. Benalmádena +6% 5 6 7. MINORCA 10. COSTA BARCELONA 11. COSTA BRAVA 15. Torremolinos +7% ADR (€) 106 (+0%) ADR (€) 132 (+7%) ADR (€) 77 (+3%) 16. Costa de Almería -4% Occ (%) 76 (+1%) Occ (%) 81% (+3%) Occ (%) 64% (+4%) 17. Costa Daurada +4% RevPar (€) 81 (+1%) RevPar (€) 107 (+9%) RevPar (€) 50 (+6%) Source: Exceltur RANKING BY 04 DESTINATIONS IN TERMS OF OVERNIGHTS Urban destination Vacation destination OVERNIGHTS AND VARIATION VS. 2018 OVERNIGHTS AND VARIATION VS. 2018 BARCELONA 5.7% GRANADA CANARY ISLANDS 2.6% COSTA BARCELONA 6.6% 1.2% 21.4 M. Overnights 3.6 M. Overnights 67.2 M. Overnights 10.7 M. Overnights MADRID 5.1% MALAGA BALEARIC ISLANDS 1.5% COSTA DAURADA 4.8% 0.4% 20.7 M. Overnights 2.8 M. Overnights 58.3 M. Overnights 9.8 M. Overnights PALMA DE MALLORCA ALICANTE COSTA DEL SOL COSTA DE CÁDIZ 2.8% 5.1% 2.8% 4.1% 9.0 M. Overnights 2.0 M. Overnights 19.1 M. Overnights 6.9 M. Overnights SEVILLE ZARAGOZA COSTA BLANCA COSTA DE ALMERÍA 5.7% 1.9% 1.0% 2.9% 5.8 M. Overnights 2.0 M. Overnights 17.3 M. Overnights 5.2 M. Overnights VALENCIA BILBAO COSTA BRAVA COSTA DE HUELVA 2.6% 4.9% 2.2% 7.1% 4.3 M. Overnights 1.9 M. Overnights 11.8 M. Overnights 3.9 M. Overnights Source: Exceltur BASED ON THE PROPORTION OF INTERNATIONAL OVERNIGHTS Urban destinations Vacation destinations INTERNATIONAL PROPORTION 2019 INTERNATIONAL PROPORTION 2019 Costa Daurada 89.0% Palma de mallorca 63.4% Madrid 92.1% Balearic Islands 63.3% 88.1% Barcelona 60.8% Alicante 86.6% Canary Islands 52.8% Costa Blanca 65.9% Valencia 59,.2% San Sebastián 72.7% Costa del Sol 43.5% Costa de Cádiz Costa de Huelva 65.8% Malaga 56.1% Las Palmas 72.1% Costa Barcelona 34.1% 63.9% Seville 54.2% Granada 71.2% Costa Brava 30.8% Costa de Almería Source: Exceltur OFFICES Madrid Barcelona Paseo de la Castellana, 141 C/ Pau Claris, 165 Edificio Cuzco IV - 14th Floor 28046 08037 T. +34 91 579 84 00 T. +34 93 410 26 80 Valencia Malaga Avda. de Aragón, 30 Plaza de la Solidaridad, 12 [email protected] 46021 29006 T. +34 93 410 26 80 T. +34 607 73 85 25.