European Hotel Performance Shows Mixed Results in May 2025

European hotel markets experienced varied performances in May 2025, with notable growth in Latvia, Greece, and Austria, while major markets such as the UK and France showed signs of stagnation.

As reported by HSMAI Europe and MKG, in May 2025, the European hotel industry exhibited a mixed performance, with some markets experiencing significant growth while others showed signs of stagnation.

The midscale and upscale segments were key drivers of performance growth, with occupancy rates (OR) increasing by 2.6 and 2.4 points, respectively. This resulted in a 5.1% growth in revenue per available room (RevPAR) for the midscale segment and a 6.2% increase for the upscale segment. Overall, the average daily rates (ADR) rose by 2.4%, and occupancy rates increased by 1.6 points, resulting in a 4.7% increase in RevPAR compared to May 2024.

The average occupancy rate across the sample panel was 74.9%, with France recording the lowest at 69.26% and Poland the highest at 83.46%. In France, despite several events in May, occupancy rates fell by 0.3 points, remaining below 70%. However, hoteliers managed to maintain ADR at a 2.4% increase, leading to a RevPAR growth of 1.9%.

Latvia saw a significant boost in RevPAR, increasing by 17.9% compared to May 2024, driven by a 6.3-point rise in occupancy rates. This growth was attributed to an influx of Russian tourists taking advantage of milder temperatures and longer daylight hours.

Greece, already a strong performer in May 2024, continued its upward trend with a 14.9% increase in RevPAR. The country experienced the highest occupancy rate increase in the panel, up 9.8 points, although ADR remained relatively stable with a slight decrease of 0.3%.

Austria also reported a 14.8% increase in RevPAR, supported by an 11.3% rise in ADR and a 2.3-point increase in occupancy rates, as tourists were drawn to its mountainous regions.

Poland and Germany were among the countries with over 10% RevPAR growth, recording increases of 13.2% and 11.9%, respectively. Germany’s performance was bolstered by a 6.2-point rise in occupancy rates, with stable ADR, partly due to the hosting of the Champions League final.

Conversely, the UK experienced a slowdown, with occupancy rates stagnating at -0.1 points, ADR declining, and RevPAR decreasing by 1.8%, marking it as the only destination with a negative performance. In France, despite a slight drop in occupancy rates by 0.3 points, RevPAR was maintained at a 1.9% increase. Spain benefited from favorable weather conditions, achieving a 9.5% increase in RevPAR, with occupancy rates up by 1.2 points and ADR rising by 8% compared to May 2024.

Overall, the performance of European hotel markets in May 2025 was characterized by varied results, with some countries experiencing robust growth while others faced challenges.