Hotels

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With Málaga soaring in its position as a region of reference in the Mediterranean, the hotel sector continues to be on the rise. We have 18 hotel projects underway, while operators and investors remain focussed on the city and the Costa del Sol.

José Luis García-Hirschfeld | Associate Director

joseluis.garciah@savills.es

Considering the growth of the city and compared with the number of hotel rooms in other Andalusian cities, we do not believe there is an excessive risk of saturation in the short term.

Málaga has positioned itself as a city of reference for culture and tourism following its successful evolution. Over the last year, it has also progressed in the business sector. One of Málaga’s challenges is to continue growing as a destination for conventions and wealthy tourism.

The outlook is for us to return to 2019 levels or even exceed the record 2019 occupancy rates and ADR by 2023.

Growth since 2010 has been exponential and forecasts indicate, when travel resumes and provided the national macroeconomic indexes are maintained, that Málaga will continue growing and enhancing its appeal as a destination for investors and operators in the hotel sector.

Traveller evolution 2010-2020

Overnight stay evolution 2010-2020

Average stay evolution 2010-2020

Operational evolution 2010-2020

Hotel establishments by category. May 2021

Hotel establishments by regime. May 2021

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Highlights

Málaga is one of the most sought-after provinces by hotel investors and operators, both in terms of the city and the coast. We continue to have all the pre-COVID benefits as a great destination for national and international demand.
2020 was an atypical year with a forced decline in visitor numbers due to the national and international travel restrictions. When travel has been permitted, bookings on the coast and in Málaga capital have resumed.
The hotel capacity in Málaga continues to rise. In 2020, a number of major projects for the city were completed and others are still ongoing, of which 18 are hotel projects.
We estimate that there will be an additional 2,100 rooms over the next few years. Málaga capital will have 7,000 rooms in 83 hotels.

It is highly likely that occupancy rates and ADR will exceed 2019 records