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This article originally appeared on HSMAI Europe.
In August 2024, the European hotel industry presented a range of performance trends, with countries demonstrating varied growth patterns in occupancy rates, ADR and RevPAR. More particularly, the overall occupancy rate reached 73.0%, reflecting a 1.7-point increase from August 2023 and a slight 0.7-point rise compared to 2022. This suggests a steady recovery in the hospitality sector, albeit with some fluctuations.
The upscale segment led with a 74.2% occupancy rate, marking a 3.7-point increase from the previous year and a 4.8-point gain over 2022. Midscale and economy segments both recorded occupancy rates of 73.1%, with modest growth from the previous year. The budget segment, at 70.1%, saw minimal growth compared to last year but a slight decline from 2022.
Average Daily Rate (ADR) increases were most notable in the upscale category, which saw a 9.8% rise to €243.3. Midscale followed with a 10.4% increase to €130.2, while the budget category saw a 10.5% rise to €72.1. Revenue per Available Room (RevPAR) mirrored these trends, with the overall figure rising by 13.1% to €104.4. The upscale segment again led with a 15.5% increase, reaching €181.5.
Year-to-date data up to August 2024 further supports these trends, with the global occupancy rate at 68.9%, showing gradual improvement. Upscale hotels continue to show strong performance, particularly in RevPAR, which grew by 33.9% year-to-date, indicating resilience and strong demand in this segment.
The August 2024 data highlights a varied performance in Europe’s hotel industry, with some countries experiencing significant growth in occupancy and revenue, particularly in Southern Europe. While many destinations show signs of recovery driven by increased travel and major events, others face challenges that impact their performance. Overall, the results suggest ongoing adjustments within the sector as it continues to navigate changing market dynamics.
