Costa del Sol Hotel Prices Continue to Climb as British Tourist Numbers Surge

Hotels along the Costa del Sol are enjoying a record-breaking summer, with prices and visitor numbers rising sharply despite concerns over affordability. According to the latest Coyuntura Hotelera de Turismo Costa del Sol report by Spain’s national statistics institute (INE), average hotel room rates in Malaga province jumped by 12.2% in July, reaching €189 per night.

The increase in rates has not deterred visitors. Hotels across the province registered more than 2.5 million overnight stays in July, up 4% year-on-year, with nearly 100,000 additional stays compared to 2024. Domestic tourism drove much of this growth, climbing almost 5%, while international overnight stays rose 3.6%.

Overall arrivals at Costa del Sol hotels grew by 2.9%, with Spanish tourists up 4.3% and foreign visitors up 2%. Notably, British tourists surged by 14.3%, reaching 110,982 visitors in July and consolidating the UK as the region’s leading international market. Ireland and the Netherlands also recorded moderate increases, while France and Germany registered declines. Poland stood out with a remarkable 27.3% increase in visitors, while Denmark saw a sharp fall of 29.5%.

The Costa del Sol’s hotel price growth nearly doubled the national average of 6.5%, with Spain’s overall room rate standing at €146. Andalucía also trailed behind, recording a 6.5% rise to €152.

The profitability of Malaga’s hotels has soared as well, with revenue per available room (RevPAR) climbing 18% in July, compared to 5.9% nationally and 8.3% regionally. Longer stays by visitors contributed to these record results. The hotel sector also expanded employment, generating nearly 8% more jobs, with 20,365 professionals working in July.

Despite the strong July figures, the overall balance for 2025 remains slightly negative. From January to July, hotel arrivals totaled 3.57 million, down 4.2% from the same period in 2024, while overnight stays fell by 1.5% to 12.5 million. Domestic tourism was the main factor, showing double-digit declines in both travelers and overnight stays during the first seven months of the year. Average occupancy stood at 60.18%, down 1.41 points.

Marbella Leads Spain in Profitability

Marbella stood out in July, consolidating its leadership in Spain’s high-end hotel market. The town reported a 17% increase in foreign visitors, with hotels achieving an average occupancy rate of 78.5%. More strikingly, Marbella set national records with an average daily rate (ADR) of €375.12 and a RevPAR of €296.25, the highest in the country.

According to Marbella’s director of tourism, Laura De Arce, local hotels hosted 85,697 guests in July, nearly 12% more than the previous year, generating over 325,000 overnight stays. “What matters most is not the number of tourists, but the income they generate,” De Arce said. “Marbella is a benchmark destination at both national and international levels, offering quality and excellence in tourism.”

With 20 new hotel establishments added this year, Marbella’s ability to maintain high profitability and absorb growing demand highlights its strength as a premium destination. The upcoming August figures are expected to provide the definitive picture of the Costa del Sol’s 2025 high season, but early indications suggest another record-setting summer for the region.

Source: Sur In English, August 2025