Quique Sanchez Flores admitted the “completely difficult” challenge of Tottenham was too much for his Watford side at White Hart Lane on Saturday.
The Hornets were beaten 1-0 thanks to Kieran Tripper’s second-half strike that took Spurs up to second in the Premier League table.
Flores believes Spurs have improved since the two sides last met on December 28 and accepted his side were beaten by the better team.
He told the BBC: “It was completely difficult. We expected a tough match. Tottenham play really quick, play intelligent balls, they have a lot of good players so it was very difficult to stop their attacks.
“Tottenham have improved since the last time we played. They have more confidence and they are one of the best teams. They have the chance to win the league.
“Playing against Chelsea and Tottenham in four days is too much. We did all the best we could but it was not enough.”