Costa del Sol hotel overnight stays in the first ten months of 2025, hotels across the Costa del Sol and the wider Málaga Province achieved the same volume of overnight stays as the entire year of 2024, according to the latest figures from Spain’s Instituto Nacional de Estadística (INE). For real-estate professionals like us at JUST Real Estate this is a signal worth unpicking—because it speaks to both resilience and opportunity in the region’s property and hospitality investment markets.
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Key Facts at a Glance
- Costa del Sol hotel overnight stays during Jan–Oct 2025 totalled approximately 19.9 million, unchanged from the same period in 2024.
- Domestic tourism continues to contract, down ~6.7%, while international stays rose ~2.2%.
- The average nightly hotel rate in Málaga province climbed to €138, outstripping the Spanish national average of €125 and the Andalusian average of €119.
- Key international source markets are growing: the UK market grew ~13% and Germany nearly 10%.
- Average hotel occupancy for the region sat at ~63.7% in the first ten months—a modest dip of 1.25% vs. 2024.
- Andalucía more broadly saw a hotel sector upswing in October: overnight stays in the region increased ~2.1% year-on-year.
The Practical Impact on Property Owners
The latest data confirms that Costa del Sol hotel overnight stays in the first ten months of 2025 have matched the entire volume recorded in 2024. Hotels across Málaga province reached 19.9 million overnight stays, signalling resilience even as the market undergoes structural shifts.
The report from Spain’s national statistics institute outlines a deceleration in growth driven by weakening domestic tourism. Local travellers dropped by 6.7%, a trend strong enough to offset the 2.2% rise in international bookings. Traveller numbers also slid by 1.6%, primarily due to an 8.3% fall in Spanish guests. Foreign visitor counts, however, strengthened with a 2% increase.
Positive Momentum Returns in October
October delivered a reset in the trajectory. Visitor numbers climbed 2.7% year-on-year and overnight stays rose 3.4%. Domestic tourism almost fully recovered during the month, posting only a minimal decrease of 0.1%. This late-year rebound demonstrates that demand remains intact and that seasonal corrections can still outperform expectations.
Rising Prices Reinforce Market Positioning
Despite stable occupancy, hotels continue to increase rates. Average hotel prices across Málaga province rose by 7.1%, hitting 138 euros per night. This outperforms both the national average (125 euros) and the Andalusian average (119 euros), reflecting the region’s premium market positioning and the sustained appetite from international travellers.
The United Kingdom remains the primary driver of inbound demand, posting a 13% rise in hotel stays. Germany, Málaga’s second largest foreign market, grew nearly 10% during the same period. These two markets continue to set the pace for the broader tourism economy.
Costa del Sol’s Competitive Standing
The Costa del Sol is now the second most visited coastal destination in Spain, only behind Mallorca. It also ranks third in overnight stays, with Mallorca and Tenerife leading. This reinforces its leadership position among year-round destinations and highlights its ongoing strength across luxury, lifestyle, and resort-driven travel segments.
Andalucía Extends Its Upward Trend
Across Andalucía, hotel activity continues its march upward. October overnight stays in the region rose by 2.1%, marking five straight months of growth and totalling over 5.25 million stays. Hotels accommodated 3.7% more guests than the previous year, driven by a 6.1% surge in domestic visitors and a 1.9% increase in foreign guests.
Regional occupancy hit 58.86%, while the hotel workforce expanded to 44,622 employees, a 3% year-on-year gain. On the Costa del Sol, occupancy across the first ten months averaged 63.7%, only 1.25% below the same period in 2024—a marginal shift given the broader national trend.
National Perspective: Profitability Strengthens
Hotel performance remains robust nationwide. Overnight stays exceeded 34.2 million in October, up 1.3%. The RevPAR indicator rose 5.4% to 86.30 euros, signalling improved profitability across the board.
The Hotel Price Index increased by 4.7%, reinforcing the upward pricing cycle. Domestic tourism showed a mild drop of 0.5%, but this was easily absorbed by a 2% rise in international bookings. The result is net growth and a healthier market balance geared toward high-value travellers.
Forward-Looking Perspective for Stakeholders
The Costa del Sol hotel overnight stays data paints a clear picture: even in a year where domestic tourism softens, the region maintains stability through strong international demand and pricing power. For investors, owners, and developers, this provides a high-confidence environment for decision-making:
- Assets with potential for repositioning remain attractive due to the sustained upward trend in nightly rates.
- International demand offers predictable long-term growth, particularly from the UK and Germany.
- Mixed-use, branded, and serviced-living concepts will continue gaining traction as operators seek diversified revenue streams.
- The late-year rebound illustrates that the market responds quickly when conditions improve—an important strategic signal for 2026 planning.
The Costa del Sol remains one of Spain’s most resilient and strategically positioned tourism hubs. Its performance through fluctuating domestic demand underscores why investors, operators, and real-estate buyers continue to prioritise this region.
Research enquiries:
James Evans — Managing Partner
📞 +34 643 390 376 | ✉️ james@justrealestate.es
Sales enquiries:
Alina Nouaimeh — Partner
📞 +34 600 689 749 | ✉️ alina@justrealestate.es
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