Spain’s tourist industry has struggled for the last few years but its hotel markets are now seeing recovery, with improved occupancy, average rates and RevPAR.

Catalonia’s move for independence from Spain could threaten the recovery, and this along with a ban on new hotel licenses has seen Barcelona hotels experiencing cancellations, prompting both domestic and international investors to look to Madrid and secondary cities such as Granada, Seville, San Sebastian and Bilboa – known for cultural attractions and cutting-edge cuisine – focusing away from beach resorts and towards urban locations.

Terrorism, instability in Catalonia and heightened competition from Airbnb and other sharing-economy players still pose a challenge, but Spain is back on the tourist map.

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