Valencia’s hotels face a surprising 10.8% drop in foreign overnight stays in 2025, despite record airport traffic, as short-term rentals challenge the hospitality sector.
As hotels in Valencia prepare for a wave of new openings, the city’s hospitality sector is navigating a challenging year marked by a significant decline in overnight stays. Despite record-breaking passenger numbers at Valencia’s airport, hotels in Valencia have seen a 5.7% drop in total overnight stays in the first half of 2025 compared to 2024, driven primarily by a 10.8% decrease in bookings from foreign visitors, according to data released by Spain’s National Statistics Institute (INE).
From January to June 2025, hotels in Valencia recorded 2,324,478 overnight stays, a decrease of 143,354 compared to the same period in 2024. While domestic travelers increased their bookings from 826,851 to 861,313, this 4.2% uptick failed to offset the sharp decline in foreign stays. In 2024, foreign guests accounted for 1,640,981 overnight stays in hotels in Valencia, but this figure fell by 177,816 to 1,463,165 in 2025. Notably, the number of foreign travelers dropped by only 2.7%, suggesting shorter stays rather than fewer visitors. The rise in alternative accommodations, such as short-term rental apartments, appears to be siphoning demand from hotels in Valencia, even as airport traffic continues to soar.
The INE’s hotel occupancy survey provides further insights into the state of hotels in Valencia. As of June 2025, the city had 205 hotels open, an increase of seven from the previous year, offering 10,294 beds (up 161) and 20,660 available places (up 429). However, occupancy rates have declined across all months, with a particularly stark drop in March, falling from 69% in 2024 to 60% in 2025. April and May saw decreases of four and six percentage points, respectively, while June’s occupancy rate of 68% was three points lower than the previous year. Only in May 2024 did hotels in Valencia achieve over 80% occupancy on weekends, compared to a peak of 74% in 2025.
Despite the downturn, hotels in Valencia have increased staffing to cope with demand. In June 2025, the sector employed 3,302 workers, up from 3,098 in June 2024, reflecting efforts to maintain service quality amid fluctuating guest numbers.
In contrast, Alicante, the Valencian Community’s second-largest urban destination, presents a different picture. Hotels in Alicante recorded a slight decline of 9,000 overnight stays compared to 2024, but a significant increase in foreign stays—from 662,300 to 711,838—offset a drop of nearly 60,000 domestic stays (from 388,758 to 328,758). This divergence highlights varying trends within the region, with hotels in Valencia struggling to retain foreign guests while Alicante benefits from their growing presence.
The challenges facing hotels in Valencia come at a time of expanding infrastructure and optimism about the city’s tourism appeal. With new hotels set to open, the sector must address the competitive pressure from alternative accommodations to recapture foreign visitors and sustain growth. As Valencia’s tourism industry evolves, hotels in Valencia face a critical juncture to adapt and thrive in a dynamic market.
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© Hotels in Valencia Grapple with Declining Foreign Stays Amid Tourism Surge – Valencian.es
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