Palma's boutique hotels are proving to be very popular. | Teresa Ayuga

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Boutique hotels in Palma had a record May in terms of occupancy and profit, with "new" markets, e.g. tourists from the USA, contributing to their performance. While there was an average 85% occupancy, some hotels had to stop selling for certain days as they were booked out.

There are nineteen boutique hotels. Between them they have 411 rooms and 807 places. The president of Palma's hoteliers' association, Javier Vich, notes that prices per night can be up to 500 euros. The clientele is, therefore, one with high spending power which "benefits other sectors in the city".

The volume of business in May was up by 12%, and the hoteliers are highly optimistic that June through to September will produce further growth. Vich attributes the growth to the excellent hotel product, which has enabled hoteliers to realise good returns on investment. The hotels themselves are contributing to an ever-improving image of the city.

The American market grew by more than 15% in May. Vich believes that there will be more growth because of new air routes between Barcelona and US airports. The IAG (Iberia) subsidiary Level starts operating to Los Angeles and Oakland this month, as does Norwegian Long Haul to these same airports and to Newark.