December was an excellent month for Palma's boutique hotels

The hoteliers' association notes that it is logical that key dates, such as New Year's Eve, should lead to higher prices. Demand outstripped supply, and the market was willing to pay. It adds that this market benefits other sectors, such as retail and restaurants.

The boutique hotels differ to city hotels in terms of the number of rooms. The latter have up to one hundred rooms, whereas the boutique hotels rarely have more than twenty. The association says that modern design, personalised services and emphasis on cuisine have meant that Palma's boutique hotels are very much in fashion with the European market, notably the British, Germans, Swiss and Scandinavians as well as Spanish. These customers have high purchasing power and look for hotels such as the ones in Palma's old town.

The city hotels, by contrast, didn't have a good December. Over the holiday period for Constitution Day and Immaculate Conception the average occupancy was around 35%. New Year's Eve was better, however, and directors of these hotels are looking forward to boosting occupancy rates when the Palacio de Congresos opens.