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Mallorca hotel profitability increases seven per cent ... and so do prices

The Balearics were one of the most profitable regions in Spain in 2025

Guests now receive "a more personalised customer experience" | Photo: Archive

| Palma |

RevPAR stands for revenue per available room. A measure of business performance used by the hotel industry, it doesn't directly measure profitability because it doesn't take account of operating costs, but it is nevertheless viewed as an indicator of profitability. In Mallorca and the Balearics in 2025, RevPAR increased overall by some seven per cent to €104 on an occupancy rate just below 75%. At the same time, the average price paid also increased by seven per cent (to €139).

These figures are given in a report by the Exceltur alliance of leading tourism and travel companies in Spain. The 'barometer' of profitability in Spanish tourist destinations shows that the Balearics were one of the most profitable regions in the country.

The Mallorca Hoteliers Federation believes the figures confirm that the Balearic tourism model has entered a new phase "marked by an improved value proposition without an increase in capacity or greater tourist pressure".

Its executive vice president, Maria José Aguiló, says: "Over the last decade, hotel owners on the island have invested more than €3.5 billion in modernising, repositioning, and digitalising their establishments. The result is a substantial change in the hotel sector. Twelve years ago, barely 30% of our member hotels were four and five-star, but today that proportion is approaching 80%."

This repositioning has allowed hotels to incorporate more sophisticated offerings such as advanced wellness and distinctive cuisine as well as a more personalised customer experience, all of which have contributed to extending the operating calendar and strengthening the pre-season. "It’s not expansive growth, but qualitative growth. Mallorca is not growing by volume or by expanding the number of rooms, but by positioning itself thanks to business decisions and a firm commitment to competing in the highest value-added segments."

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