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Valencia hotels increase occupancy rates

According to the Association of Hoteliers of Valencia (UHPV), hotel occupancy levels in this region of Spain improved slightly during the first half of 2010 in relation to the same period of the previous year. Occupancy rates in Valencia reached 56% in the period compared with 50% in 2009, however, the average room rate achieved continues to fall and is now just 68€.

The general secretary of the UHPV (Unión Hotlerera Provincia de Valencia), Luis Martí, has made an assessment of both the occupancy levels over the first half of the year in the hotel sector in this part of Spain and the impact the recent economic crisis has had on Valencia hotels over the past 18 months. According to the conclusions provided by Mr Martí, demand for hotels in Valencia still remains at levels below those of previous years.  For example, in 2007 hotel occupancy levels stood at 70.7%, this figure dropped to 60.8% in 2008 and, as we have seen, in the first half of 2010 the occupancy rate is 56%.

Nevertheless the 6% improvement experienced this year compared with 2009 allows hoteliers in the capital of the Levante area feel a certain level of renewed optimism as it can be read to indicate that Valencia remains an attractive destination for tourists coming to Spain on holiday. However an area for concern is the fact that the price of rooms in Valencia has fallen by 27% since 2007, which means the profitability of hotels in the area is at very low levels and operators are running on very tight margins. According to Martí, the main reason for this is the oversupply of hotels in the city of Valencia, where the number of establishments doubled in just a few years.

The secretary of the hotel association also pointed out that some of the reasons for the crisis in the tourist sector was due to the nature of competition between hotels in Spain which has been mainly price-driven rather than by the level of service provided. Spain also is facing increased competition from other destinations abroad as well as the difficult economic situation.

In spite of the difficult times Spain is experiencing, the hoteliers in Valencia remain optimistic that occupation levels this summer will continue to be better than last year and are estimating they will come in at somewhere between 50 and 60%.

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This entry is filed under Valencia Hotels.