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Austria emerged as the top performer in RevPAR growth, with an 18.1% increase. – Image Credit Unsplash
April 2025 saw varied performance across European hospitality markets, with notable RevPAR growth in Austria, Hungary, and the Czech Republic, while other countries experienced mixed results.
As reported by HSMAI Europe, in April 2025, the European hospitality sector experienced a mixed performance, with some countries witnessing significant growth in Revenue Per Available Room (RevPAR) while others faced challenges. The Easter holiday, which fell in April this year, alongside the spring vacations, played a crucial role in boosting leisure destinations across Europe.
Occupancy and Pricing Trends
Overall, European hoteliers reported a 2.5% increase in RevPAR, reaching nearly €90. The budget segment showed the most substantial growth in occupancy rates, increasing by two percentage points compared to April 2024. The economy segment remained stable, with a slight increase of 0.3 points. Average daily rates rose by 1% across all segments, reflecting hoteliers’ efforts to adjust pricing strategies in response to the heightened sensitivity of both corporate and leisure customers. However, this increase was below the inflation rate of 2.4% reported by Eurostat for April 2025.
Top Performing Markets
Austria emerged as the top performer in RevPAR growth, with an 18.1% increase. The country also recorded the second-highest occupancy rate increase of four points and the highest average daily rate growth of 11.9%. Austria’s appeal during the school vacation period, particularly its winter sports offerings and attractions in Vienna, drew a significant number of visitors, especially from Germany.
Hungary secured the second position, continuing its strong performance since the beginning of the year. The country attracted visitors who found other markets with average daily rates above €100 unaffordable. Hungary’s occupancy increased by 2.9 points, and average daily rates rose by 7.9%, resulting in a 12.3% increase in RevPAR.
The Czech Republic, hosting the Ice Hockey World Championships from April 9 to 20, saw its occupancy rate rise by 4.3 points, the highest increase among the panel. This event, along with a modest 3.1% increase in prices, contributed to a 9.2% rise in RevPAR.
Performance of Major Markets
Among major markets, France performed well, posting a 6.5% increase in RevPAR to €78.8, just behind Portugal. This growth was driven by a three-point increase in occupancy rates and stable or slightly higher average daily rates, despite a 0.9% inflation rate.
Spain’s occupancy rate remained stable, with a slight increase of 0.2 points, but prices rose by 4.6%, pushing RevPAR to €114.1, a 4.8% increase. The country’s popular “sol y playa” formula and city-breaks continued to attract visitors.
In the United Kingdom, visitor numbers were stable, with a slight decline of 0.4 points, and prices remained steady at 0.2%. The RevPAR remained stable at -0.3%, with no major events except for the London Marathon on April 27, which attracted around 57,000 runners.
Germany faced challenges, with a 2.2-point decrease in occupancy rates and stagnating average daily rates at 1.8%, leading to a 1.5% decline in RevPAR, approaching the €70 mark.
Italy experienced stable visitor numbers, with a slight increase of 0.7 points, despite events like Milan Design Week and the death of the Pope at the end of the month. Average daily rates decreased slightly by 0.9%, resulting in a 1.8% increase in RevPAR.
RevPAR Challenges in Other Markets
The UK and Germany were among the least affected markets. In Greece, despite a 7.6-point drop in occupancy, hoteliers managed to increase average daily rates by 8.1%, maintaining the third-highest RevPAR in the panel, behind the Netherlands and Italy.
Switzerland and Belgium adopted different strategies, with declines in average daily rates of 1.8% and 5.1%, respectively. Swiss hoteliers saw a slight stabilization in occupancy at -0.7 points, while Belgium experienced a minor increase of one point.
Overall, Europe’s hospitality market remains diverse, with a significant €103.1 difference between the highest RevPAR in the Netherlands (€147.6) and the lowest in Latvia (€44.5). This disparity highlights the varied quality and offerings across the continent, with destinations ranging from budget-friendly to high-end. Despite these differences, the Old Continent remains an attractive destination, with occupancy rates ranging from 67.9% in Germany to 83.8% in the Netherlands.
