Lanzarote’s hotels and holiday rentals generate more than €1 billion in a single year for the first time

For the first time in the Lanzarote’s history, hotels and tourist apartments have broken through the €1 billion revenue barrier in a single year.

According to figures released by the Lanzarote Data Centre, accommodation providers across the island generated a total of €1.021 billion in 2025, up from €972 million the previous year.

Hotels accounted for €801 million of that total, while non-hotel accommodation – excluding holiday rentals – contributed €220 million.

The record revenues come despite a drop in tourist numbers and overnight stays. The island welcomed 2.49 million guests last year, some 26,000 fewer than in 2024. Those visitors accounted for 17.8 million overnight stays, a reduction of 600,000 on the previous year. The average length of stay also dipped slightly, from 7.5 nights to 7.3 nights.

At the same time, the number of available rooms fell from 64,791 in 2024 to 63,135 last year. Occupancy rose from 85.2% to 85.6%.

There was an increase in the average nightly rate, too. Rates rose by 7.2% to reach €126.40 per night in 2025 – an increase of €8.50 on the previous year’s average of €117.90.

Hotels ended 2025 with 10,012 employees, a net decrease of nine staff members compared with the start of the year. Non-hotel accommodation, by contrast, finished the year with 2,402 employees, representing an increase of 28 jobs since the beginning of 2025.