In 2025, the Balearics consolidated the trend towards a tourism model increasingly focused on value rather than massive growth in room capacity. The latest report by consultancy firm Colliers on the holiday hotel market highlights that the islands recorded the lowest increase in hotel capacity in the last five years, with a rise of just 0.6% in the number of operational beds, whilst hotel rates continued to rise sharply. In Mallorca, the ADR (average daily rate) rose by 8.1%, one of the highest increases in the region.
The study shows that the Balearics reached a total of 1,378 hotel establishments and 381,103 operational beds last year, record figures for the destination. However, the growth in supply slowed significantly compared to previous years, against a backdrop marked by regulatory pressure and a market that increasingly prioritises the renovation, repositioning and improvement of assets over increasing volume.
Colliers interprets this change as a structural transformation of the Balearic tourism model. The limitation on new supply and urban planning and tourism restrictions are fostering a scenario of greater stability for occupancy rates, room rates and the value of hotel establishments, further reinforcing the Balearic appeal to major funds and international investors.
In parallel with this containment of supply, hotel profitability soared once again during 2025. The Balearics recorded an average ADR of €153, although with significant differences between the islands. Ibiza and Formentera maintained the highest rates, with an average of €199 per room, whilst Mallorca stood out for its strong annual increase of 8.1%, second only to Menorca, which led growth with 10.8%.
Hotel occupancy across the region reached 84%, an improvement of 0.7 percentage points on the previous year. This combination of high occupancy rates and rising prices also drove RevPAR (revenue per available room) up to €129, 8.7% higher than in 2024 and at historically very high levels for the destination.
The report directly links this trend in profitability to the intense investor interest that the Balearics continue to attract. Between 2019 and 2025, the islands attracted over €3 billion in hotel investment, with the majority of this capital concentrated in the last five years following the pandemic.
The strength of the Balearic destination continues to be underpinned by very solid international demand. In 2025, the islands recorded a total of 63.6 million hotel overnight stays, 0.9% more than the previous year. Foreign tourism accounted for 92% of total stays, further reinforcing the region’s international profile.
Tourism expenditure also broke records once again. The Balearics reached a total volume of €21.06 billion in 2025, 5.2% more than in 2024. Furthermore, the average daily spend per visitor rose to €214, well above the national average.
Colliers believes that the Balearics are entering a new cycle of tourism and investment, underpinned by an increasingly premium positioning and the growing interest of high-end operators and brands. The consultancy firm emphasises that the combination of limited supply, high international demand and improved hotel quality will continue to underpin both the operational profitability and the investment appeal of the islands in the coming years.
“The Balearics maintain their position as one of the most established and attractive holiday destinations in the Mediterranean, backed by a mature tourism infrastructure and strong international reputation,” says Gonzalo Gutiérrez, Managing Director of Hotels at Colliers.