Spanish hotels threatened by glut of new openings?

Barcelona's booming convention market and its increasing popularity as a short break destination has led to a 22.7% increase in average hotel room yield during the first six months of the year to £83, according to latest statistics from Jones Lang LaSalle

"This will most likely have the effect of dampening hotel occupancy rates in the medium term as the market attempts to absorb the additional supply," said Arthur de Haast, managing director Europe at Jones Lang LaSalle Hotels.

Room yield in the Madrid hotel market increased 18.5% to reach £80 during the first half of 2000.

Madrid hotels are benefiting from spill-over convention business for which Barcelona has no room , while marketing campaigns targeting the leisure market have boosted occupancy levels above the 80% mark for the first time since the Spanish recession.

By Lois Jones