Lanzarote hotels lead the Canary Islands in profit growth for 2025

14-01-2026
Business
Canarian Weekly
Photo Credit: TUI Group

Coastal holiday destinations ended 2025 with stronger results than urban cities, posting an average increase of 3.9%, driven by a broad rise in revenues of 7% up to November, according to the latest Tourism Outlook report from Exceltur, the alliance representing Spain’s leading tourism companies.

Lanzarote stood out across the Canary Islands, with hotel profitability per room rising by 10.2% in 2025 to reach 127.80 euros. This marks the highest growth rate in the archipelago.

With this boost, Lanzarote now ranks as the sixth most profitable coastal destination in Spain. Only Ibiza-Formentera (170.30 euros), Costa de Barcelona (146.50 euros), Menorca (135.60 euros), Gipuzkoa (129.60 euros), and Gran Canaria are ahead. Gran Canaria’s hotels also performed strongly, increasing profitability by 7.8% to 128.90 euros.

Lanzarote’s profitability exceeds that of all major urban destinations except Barcelona and San Sebastián. Even Madrid, which posted an impressive 9.1% rise, closed the year at a slightly lower 127.20 euros per room.

Across Spain, only one island outpaced Lanzarote in overall growth: Menorca, where hotel profitability jumped by 13% to 135.60 euros.

Tenerife recorded a 3.8% increase in 2025, bringing average profitability to 124 euros per room, while Fuerteventura saw a 2.9% rise to 96.90 euros.