British holidaymakers underpinned a successful summer for the Spanish Palladium Hotel Group as it forecast surpassing last year’s record revenue of €1.069 billion.
The key industry metric of revpar (revenue per available room) was up by 14% across its holiday hotels in Europe, driven by an 8% rise in duration of stay and a 5% increase in the average room rate.
The positive figures achieved between May and October followed strong results from earlier in the year, allowing the group, which operates more than 40 hotels, to enter autumn on course to top record revenue achieved in 2023.
Hotels in the Balearic and Canary Islands, Costa del Sol and Sicily achieved particularly strong results during the May-October summer season, according to the company.
The UK remains the primary market for the group’s European hotels, accounting for 27% of market share.
British tourists represent 28% of the total market for the group in the Balearic Islands, rising to 62% in Tenerife, followed by Ireland and Spain at 5% each.
Forecasts indicate that revpar at the Hard Rock Hotel in Tenerife is expected to grow by 5% year-on-year.
Among the top-performing destinations was Italy, where Grand Palladium Sicilia Resort & Spa achieved a 15% increase in revpar, supported by a 6% increase in duration of stay and an 8% rise in average daily rate (ADR).
Revpar in the Balearics grew by 10% compared to the same period last year.
The UK is the second main source market (14%) for Palladium properties in the Caribbean and Americas region, following the US (24%).
The group’s hotels in the region achieved a 4.6% increase in revpar between May and October, with the ADR growing by 6%.
The company’s 10 hotels in Mexico achieved over a 10% increase in revpar, driven by a 5% rise in both duration of stay and average daily rate.
The group’s hotels in the Caribbean and Americas expect to see a 13% annual increase in revpar by the end of the year, driven by a 10% rise in duration of stay, linked to higher capacity.
Chief sales and marketing officer Sergio Zertuche said: “We are very pleased with the results achieved this summer season. We overcame the slowdown in summer travel in the Caribbean and Americas and a slight decrease in demand in Europe due to the Euros and Olympic Games to rebound.
“A strong start to the year and our adaptability to changing conditions allow us to approach the end of 2024 with confidence in exceeding last year’s record €1.069 billion in managed revenue.”