The sample of branded full-service hotels in Barcelona recorded an increase in profit during the 12-month period ending in May 2025. The GOP per available room (GOP PAR) rose by 8.6%, driven by a 5.6% revenue increase and despite rising expenses (+3.3%).
OVERVIEW
- The sample of branded full-service hotels in Barcelona recorded an increase in profit during the 12-month period ending in May 2025. The GOP per available room (GOP PAR) rose by 8.6%, driven by a 5.6% revenue increase and despite rising expenses (+3.3%).
- Rooms revenue grew by 4.9% (YoY) driven by a 4.1% increase in ADR reaching €264. Occupancy rose by 0.8% to 73.6%. F&B revenue increased by 7.6%, reaching €70.2 POR during YE May 2025.
- Occupancy rates increased primarily in January, March, and December by +22.3%, +10.3%, and +7.0% respectively. Meanwhile, occupancy decreased in October (-8.3%), April (-4.2%) and February (-3.6%).
- Total expenses increased by €4.4 PAR (+3.3%), driven by increases of Payroll (+€2.1 PAR) and Cost of Sales (+€1.3 PAR).
- The performance growth was supported by the constrained supply, which increased by 462 rooms, representing only 0.1% YoY growth (weighted by opening date).
- The increase in revenue surpassed the increase in expenses leading to a GOP Flow Through of 66.9%. As a result, the GOP margin grew from 43.9% to 45.1%, with the nominal GOP reaching €114.2 PAR (+8.6%).
SUPPLY
- During the period YE May 2025, five new hotels opened in the Barcelona hotel market (645 rooms) and 5 closed (-183 rooms), resulting in a 0.1% increase in total supply (weighted by opening date)
- Most of the new supply opened outside the city center (74.1%) and primarily within the Luxury and Upper Upscale classes (73.0% and 23.7% respectively)
- Most of the new room supply was branded (91.5%), with the remainder being three small independent apartment-hotels. Overall, only 6.7% of the new room supply was in the extended-stay sector.
- There was one notable hotel conversion during the YE May 2025 period, the Leonardo Royal forum (formerly (AC by Marriott), with 368 rooms. The Grand Hyatt Barcelona (formerly part of the Unbound Collection) was also rebranded in April 2024.
- There were 5 closures announced during the last 12 months; most being smaller extended stay apartments ( 3 out of the 5 closed properties). The remainder, the Hotel Zenit Borell, and the Gran Hotel La Florida are closed for refurbishment.
PAYROLL COSTS
- The labor expenses in the selected Barcelona hotels increased during the last 12-months (YE May 2025) by €2.1 PAR (+3.2%), reaching €67.9 PAR. The Rooms department led the increase, where payroll increased by €0.7 PAR (+2.8%), followed by F&B (+€0.6, +2.6%) and A&G department (+€0.4, +6.6%).
COST OF SALES
- Total COS increased by €1.3 PAR (+6.7%), primarily driven by the F&B (+€1.1, +14.2%) followed by the Rooms department (+€0.2, +1.4%).
OTHER EXPENSES (excl. Utilities)
- Other expenses increased by €0.6 (+1.4%) to €44.3 PAR, driven by higher other cost within S&M (+€0.6 PAR) F&B (+€0.2 PAR) and A&G (+€0.1) departments. The total increase was offset most notably by the P&M (-€0.4) department.
UTILITY COSTS
- Utility costs increased by €0.4 PAR (+7.6%), due to gas costs increasing by €0.4, and water by €0.1, meanwhile electricity decreased by €0.1.
