canary islands hotel record profits february 2026 uncertainty

Canary Hotels See Record Profits Amid Global Uncertainty

Record Hotel Profits in a World on Edge

The tentative slowdown in tourist arrivals observed in the Canary Islands for months appears not to have affected hotel performance, which enjoyed an excellent February. The profitability of the archipelago’s establishments is soaring, with the second month of the year generating the highest revenue in history. The key metric of Revenue Per Available Room (RevPAR) reached €138.70, a 1.4% increase on the previous year. February, however, was the last month of global geopolitical normality, as just one day before March began, the US and Israeli attack on Iran blew all forecasts apart.

The uncertainty over how this war might affect the international tourism market makes it difficult to predict what will happen in the coming months. In theory, the diversion of tourists who planned to travel to areas near the conflict could increase visitor numbers to the Canaries. Yet the war’s effects on oil prices and its potential impact on the economies of key source markets mean almost any scenario is possible.

A Sustained Trend of Growth

For now, the second month of the year continued the trend the hotel industry has maintained almost since recovering from the pandemic: rising prices and greater profitability. With only a few blemishes on the record—such as a drop in revenue in May 2025—accommodation in the archipelago has accumulated 57 months of continuous growth.

This is evidenced by the RevPAR, published yesterday in the Hotel Situation Survey by Spain’s National Statistics Institute (INE). This is one of the fundamental official indicators for measuring the profitability of such businesses, and in February it reached the highest figure since records began. Equally notable is the Average Daily Rate (ADR), which neared €157 per room, the highest ever for a February in this statistical series.

What the Numbers Really Mean

What does this mean? That hotels, despite also experiencing a substantial increase in their costs in recent years, are earning more than before the pandemic. Furthermore, the high prices—which last year rose more than double the inflation rate and are on the same path this year with a 6.1% increase in two months compared to a 2.1% rise in the Consumer Price Index—are not deterring tourists in the slightest.

Although the number of overnight stays dipped slightly last year (the decline was less than 0.09%, but was seen as a turning point as it ended several years of uninterrupted growth), February saw positive figures. Overnight stays are an excellent barometer for measuring tourist activity in the Canaries because they directly reflect real demand, the length of a tourist’s stay, and the economic impact, as hotels charge per night, not per traveller.

While this indicator showed a 1.3% decline in January, it increased by a modest 0.15% in February. The number of guests accommodated did rise in both January and February, which led to a slight decrease in the average length of stay—from 6.4 days in 2025 to 6.3 days in February of this year.

A Clouded Horizon for 2026

These good figures arrive at the start of a year that follows a 2025 which will be remembered in the islands’ hotel sector as one of the best in history. In fact, when business owners were asked about their dream forecasts for this year, there was one fixed idea: a year of stability that would at least allow them to match 2025’s data. The first part of that hope has already been dashed. The war in the Middle East has shattered any predictions that existed at the start of this year.

It is therefore very difficult to forecast the sector’s activity in the coming months, as the duration of the conflict and its potential effect on one of the greatest spectres looming over European economies—inflation—are unknown. What is certain is that if the scenario in the coming months resembles what happened during the war in Ukraine—with significant increases in the cost of oil—we can expect nothing other than new price rises across all services and products, including hotels.

During the previous inflationary crisis, hotel establishments—like companies in all sectors—had to pass on their own increased costs to their rates. They were paying more for electricity, running water, and the food served in their buffets. Now, although it may not be immediate, a Middle East conflict that escalates or becomes protracted could have this same effect on the archipelago’s principal industry.

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