European Hotel Industry Sees Mixed RevPAR Trends in June 2025

The European hotel industry experienced varied RevPAR trends in June 2025, with notable declines in Germany and the UK, while France and Eastern European markets showed growth.

As reported by HSMAI Europe and MKG, the European hotel industry showed mixed performance in June 2025, with RevPAR (Revenue Per Available Room) growth becoming increasingly scarce across the continent. According to the latest data, overall RevPAR in Europe increased by 1.4%, supported by a 0.5 percentage point rise in occupancy rates. However, average daily rates (ADR) saw a slight decline of 0.8%. The eurozone’s inflation rate for June 2025 was reported at 2% by Eurostat.

Germany, one of Europe’s largest hotel markets, experienced a significant 20.3% drop in RevPAR compared to June 2024. This decline is attributed to the absence of the Euro 2024 football tournament, which had boosted performance last year. When compared to June 2023, RevPAR in Germany decreased by 7%, with ADR down by 2.7% and occupancy rates falling by 3.3 percentage points. Year-to-date figures show a 1.2% decline in RevPAR compared to the first half of 2024.

Similarly, the United Kingdom reported a 0.8% decrease in RevPAR for the period from January to June 2024. Despite stable occupancy rates, a sluggish demand has prevented hoteliers from raising ADR, which fell by 3.4% compared to June 2024. Consequently, RevPAR declined by 3.3%.

In southern Europe, seaside destinations, which had been driving performance earlier in the year, are now experiencing a slowdown. Spain, a key market, recorded a slight RevPAR increase of 0.8%, with occupancy rates declining by 0.8 percentage points to 81.3% and ADR remaining stable, increasing by 1.7%. Portugal also experienced a slight decline in occupancy rates to 78.6%, resulting in a 0.3% decrease in RevPAR, despite ADR increasing by 0.7% compared to June 2024. Greece reported a 4.1% decline in RevPAR, as both occupancy rates and ADR fell.

Conversely, Italy reported positive results, benefiting from an influx of pilgrims during the jubilee year of 2025. The country’s occupancy rate rose to 80.8% in June 2025, up by 2.1 percentage points from the previous year. Stable ADR at a 2% increase contributed to a 4.7% rise in RevPAR.

France emerged as a strong performer, with occupancy rates increasing by 3.5 percentage points, largely driven by the Paris market. High demand, particularly from international visitors, allowed hoteliers to raise ADR by 8.7%, resulting in a 13.8% increase in RevPAR, marking the highest growth in the region.

Eastern European markets, including Poland, Latvia, and the Czech Republic, also reported positive RevPAR trends. Poland and the Czech Republic saw RevPAR increases of 8.9% and 12.6%, respectively, supported by occupancy gains. Latvia experienced a 4.9% rise in RevPAR, driven solely by growth in ADR.

The European hotel industry continues to face mixed performance, with corporate demand remaining weak. The sector is exploring additional offerings to boost average customer spending as a potential growth strategy.