Canary Islands have most expensive hotel prices in Spain for New Year’s Eve
The Canary Islands are Spain’s most expensive tourist destination for hotel stays on New Year’s Eve, with an average room price of €378 per night, which is a 10% increase compared to last year.
Despite the sharp rise in the islands, hotel prices across Spain as a whole have recorded a moderate fall of 2% for the end-of-year period, covering 31st December and the nearest weekend, compared with 2024.
The study links this national adjustment to the configuration of the calendar, with New Year’s Eve falling on a Wednesday this year. This has meant that travellers need to take more days off work to plan a short break, reducing some last-minute and spontaneous demand.
Madrid and Barcelona have seen the biggest price drops nationwide, with decreases of 8% and 10% respectively. Despite this fall, Madrid still ranks as the fourth most expensive city in Europe for New Year’s Eve hotel stays, behind London, Paris and Amsterdam. London leads the European ranking with an average price of €364 per room, although it has also recorded a year-on-year drop of 10%.
Elsewhere in Spain, hotel prices have risen sharply in Alicante, up 19%, and more moderately in Valencia, which saw a 4% increase. Seville and Málaga registered smaller adjustments, with declines of 2% and 4% respectively, while prices in the Balearic Islands remained stable.
The report shows that four-star hotels tend to keep their prices more stable, while more budget hotels see bigger fluctuations. It also highlights a growing divide in the sector, with luxury hotels continuing to perform well, while lower-priced accommodation is seeing fewer bookings and lower average room rates.
Looking ahead to 2026, the hotel industry expects demand to split between high-end hotels, which are likely to remain strong, and more affordable accommodation, which may face greater pressure. This divide is expected to influence pricing and business decisions across hotel chains in Spain and the Canary Islands.
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