The southern part of Gran Canaria is experiencing a period of high financial tension in the hotel sector. Maspalomas, the island's tourist epicenter, faces a brutal clash between the resilience of tourism and cost pressures, negative operating leverage, and the quiet revolution in the financing markets. Smaller local hotels are feeling the pressure of an environment where stability seems a luxury reserved for large international chains.
The real estate outlook confirms the risk. The Z spread for the real estate and rental/leasing sector (SCIAN 53) stood at 220 basis points in September 2025, showing some improvement from the peak of 336 basis points in July 2022, but maintaining relative stability after the volatility of 2022-2023. The apparent calm hides a disturbing fact: any increase in costs or adjustments in financing could severely impact local operators, whose maneuverability is limited.
Hotel financing has undergone drastic structural changes. Since 2007, traditional local banks such as Caja Insular and Caja Rural de Canarias have withdrawn from the sector, forcing operators to rely on life insurance, CMBS, credit unions, and debt funds. Total financing rates are in the mid-to-high 6% range, while Treasury bonds remain below 4%. Investors prefer branded hotels such as Hilton, Marriott, Hyatt, or IHG, which offer debt yields of 12% or higher, leaving smaller local operators at increasing risk and with little room to maneuver.
Despite the storm, some indicators show resilience. RevPAR grew 4,8% year-over-year in 2023, average daily rates (ADR) increased 4,2% year-over-year, and the occupancy rate reached 62,9%, approaching pre-pandemic levels. However, these positive figures coexist with negative operating leverage, rising regulatory and tax costs, international competitive pressure, and infrastructure limitations, marking a worrying outlook for 2025.
Experts warn: passive management can be fatal. Cash flow generation, debt service coverage, and operational efficiency are now essential. In Maspalomas and the rest of southern Gran Canaria, tourism demand remains strong, but operational intensity and market tensions require prudent strategies and strict financial management. The line between stability and collapse for local operators is thinner than ever, as large international chains consolidate their dominance and take advantage of the weakness of their island competitors.
