Hotels in Ibiza and Formentera Increase Revenue per Available Room by Almost 8% Through September

30 October 2026 г.

The Pitiusas rank among the Balearic Islands' strongest-performing hotel markets in 2026, according to EY-Parthenon. The increase comes amid higher room rates, shorter stays and growing pressure on operating costs.

Hotels in Ibiza and Formentera increased their revenue per available room (RevPAR) by almost 8% between January and September 2026, placing the Pitiusas alongside Mallorca among the Balearic Islands' strongest-performing hotel markets.

The figures come from The Hotel Property Telescope – Baleares Edition, a report by EY-Parthenon, cited in reporting by Europa Press and La Voz de Ibiza.

The increase exceeded the average growth of 7% recorded across the Balearic Islands during the same period. Menorca registered a smaller increase of 2.5%.

The results point to continued growth in hotel revenue, supported by higher room prices. However, EY-Parthenon also highlights increasing pressure on operating costs, warning that stronger room revenue does not necessarily translate into higher business profits.

Higher room revenue despite weaker demand

The latest figures follow a summer in which hotels in Ibiza and Formentera generated higher revenue per available room despite a decline in demand.

According to Exceltur's summer assessment, the Pitiusas recorded an average RevPAR of €225.10 between June and August, an increase of 9.5% compared with the same period in 2025.

The increase came alongside a 2.4% decline in total hotel demand. International demand fell by 2.8%, while domestic demand increased by 0.7%.

The figures placed Ibiza and Formentera ahead of other major Spanish holiday destinations in this particular summer comparison.

Mallorca recorded an average RevPAR of €170.10, up 9.2%, while Menorca reached €186.70, an increase of 1%.

These summer figures come from Exceltur and cover June to August. They are separate from EY-Parthenon's January-to-September analysis and should not be combined as if they were one continuous statistical series.

September brought higher prices but fewer overnight stays

September data published by the Balearic Institute of Statistics (IBESTAT) also showed an increase in hotel revenue indicators, although the number of overnight stays declined.

According to the figures reported by La Voz de Ibiza, the average daily rate for occupied rooms (ADR) reached €219 in September, an increase of 10.22% compared with September 2025.

Revenue per available room rose by 9.82% to €186.20, while overnight stays fell by 2.06%.

The figures suggest that higher room prices helped sustain revenue per available room despite fewer overnight stays.

The results also varied by hotel category, with four-star establishments recording a different trend from the broader market.

Hotel investment in the Balearic Islands gains momentum

The EY-Parthenon report also highlights the strength of hotel investment in the Balearic Islands.

Hotel investment in the archipelago doubled during the first half of 2026 compared with the same period in 2025 and exceeded the total recorded during the whole of 2025, according to the report cited by La Voz de Ibiza.

The Balearic Islands accounted for 23% of hotel investment in Spain during the period, with luxury properties attracting a significant share of investor interest.

A separate estimate by property consultancy Colliers put hotel investment in the Balearic Islands at €577 million through June 2026, compared with €464 million for the whole of 2025.

These figures come from different market analyses and should not be treated as directly interchangeable.

Several high-value transactions have also taken place in Ibiza.

Among them was the sale of Hotel Corso, valued by Colliers at approximately €140 million, with plans for repositioning under a Marriott brand.

The Mongibello hotel in Santa Eulària was also sold for approximately €60 million, according to property-market sources cited by La Voz de Ibiza.

These are individual transactions and do not represent the total amount invested in Ibiza during 2026.

Palladium reports major investment in hotel upgrades

Palladium Hotel Group has also been active in the island's hotel market.

The company repurchased the 75% stake in its joint venture with Azora for €300 million. The portfolio includes hotels in Ibiza and Sicily, meaning the full transaction value cannot be attributed to Ibiza alone.

Separately, Palladium reported spending more than €90 million on hotel renovations in Ibiza between 2025 and 2026.

The investment reflects the continued focus on upgrading existing hotel properties and positioning them towards higher-value accommodation and services.

Higher revenue does not necessarily mean higher profits

Despite the increase in room revenue, EY-Parthenon identifies operating costs as a growing challenge for hotel businesses.

Across the Balearic Islands, the average daily rate (ADR) increased by 8%, while occupancy declined by 0.8 percentage points. RevPAR rose by 7%.

However, the report warns that higher prices and room revenue do not automatically produce stronger operating margins when labour, energy, maintenance and other business costs also increase.

This distinction is particularly important when interpreting hotel performance. RevPAR measures the revenue generated per available room, not the profit remaining after expenses.

The report therefore highlights the importance of operating efficiency and cost management alongside pricing strategies.

The American market and future hotel investment

The report also points to the growing importance of international demand and investment in premium accommodation.

According to figures cited by EY-Parthenon, the Balearic Islands received almost 303,000 visitors from the United States between January and September 2026, nearly three times the number recorded during the same period in 2019.

This is a figure for the entire Balearic archipelago, not Ibiza alone.

United Airlines is also scheduled to launch a direct Newark–Ibiza service on 31 May 2027, with four weekly flights. The route is expected to provide another direct connection with the American market, although it is not yet operating.

EY-Parthenon expects investor interest to continue into 2027, particularly in luxury hotels, wellness-oriented accommodation and hybrid hospitality concepts combining accommodation with additional services.

A hotel market increasingly focused on value

The latest figures show that Ibiza and Formentera continue to generate strong hotel revenue per available room, even as demand and the duration of stays face pressure.

The almost 8% increase recorded through September places the Pitiusas among the Balearic Islands' strongest-performing hotel markets.

However, the challenge for the sector will be converting higher room revenue into sustainable operating results while managing rising costs and changes in visitor behaviour.

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