94% of all hotel projects currently under development in the Canary Islands are four or five stars, according to the report ‘The rise of the Canary Islands’ luxury appeal’ prepared by the international real estate consultancy JLL.
“The Canary Islands have a wide margin for investment and growth due to the scarcity of luxury hotel places and the foreseeable growing demand in markets with high purchasing power such as the United States", explained the vice president of the consultancy, Ana Ivanovic.
The consultancy highlights the good performance of Lanzarote and Tenerife in this segment. Lanzarote has a long tradition of renovating old hotel facilities to offer luxury establishments and thus contain the expansion of hotel places on the island.
New openings on both islands
And the trend continues. Since 2019, luxury tourism in Lanzarote has grown by 21%. Among other novelties this year, the Salinas hotel has reopened, now Paradisus, a luxury brand that promotes experiences for its clients.
For 2025, the emblematic luxury hotel group Hyatt Hotels Corporation plans to open two new hotels on the island: the Alila Lanzarote and Grand Hyatt Lanzarote.
However, this segment has grown even more in Tenerife, where it has grown by 28%. The growth of the luxury sector in Tenerife is so high that it already accounts for 70% of all projects to develop four and five-star hotels in the archipelago.
One of the most significant recent openings in Tenerife has been by Tivoli Hotels & Resorts, which in Costa Adeje, has opened this year the Tivoli La Caleta hotel, previously operated by the Sheraton brand.
Rates, gastronomy and infrastructures
Lanzarote is achieving considerable rates in its luxury hotels. Those located in the municipality of Yaiza exceeded 163 euros on average per night in August. In those of Tías they were 157 euros. The Canary Islands average for this segment stood at 138 euros in August.
However, Tenerife is achieving even higher rates. Many of its establishments exceed 200 euros per night on average. The figures for the largest island in the Canary Islands are particularly good in luxury hotels in the town of Guía de Isora, where they exceeded 256 euros on average per night.
In the field of gastronomy, despite the considerable growth in supply and quality in Lanzarote in recent years, Tenerife alone obtained 5 new Michelin stars in 2022, bringing the total to 7 stars in the French guide.
Another key to attracting tourism and in particular the luxury segment is to have adequate infrastructures that adjust the load capacity. A remodeling is being carried out at Lanzarote airport, which will cost more than 140 million euros.
Meanwhile, an investment of 160 million euros (out of a total of 300 million) has been made at Tenerife South Airport to increase its passenger capacity.
In addition, Tenerife plans to invest another 293 million to improve the connection between the north and south of the island both by rail and road.
