- Southern and Eastern Europe witnessed significant growth, while Germany showed signs of contraction.
- The Upscale hotel segment leads the market with a 6.9% RevPAR growth, whereas the Midscale segment experiences more moderate gains.
As reported by HSMAI Europe, in January 2025, the European hotel industry presented a dynamic landscape with varying degrees of growth and challenges across regions. Southern and Eastern Europe emerged as the leaders, exhibiting strong growth, while some markets, such as Germany, showed signs of contraction.
Southern Europe witnessed notable increases in Revenue Per Available Room (RevPAR), with Spain recording an 8.5% surge, followed by Italy (6.3%) and Portugal (6.8%). This growth was underpinned by stable occupancy rates and an Average Daily Rates (ADR) uptick. Eastern Europe was not far behind in terms of robust performance. The region saw an influx of tourism and business travel, which greatly benefitted countries like Latvia (33.5% RevPAR growth), Hungary (19.8%), Poland (13.9%), and the Czech Republic (12.3%). Conversely, Germany experienced a 3.2% decline in RevPAR, indicative of the country’s ongoing market challenges.
Regarding hotel segments, the Upscale category led the market with a 6.9% RevPAR growth, while the Midscale segment experienced more moderate gains. These trends underscore the shifting market conditions as the industry adapts to consumers’ evolving demands.
The Upscale hotel segment outperformed others in January 2025, registering a 6.9% RevPAR growth. This was largely driven by a 1.9-point increase in occupancy to 56.2% and a 3.2% rise in ADR. The strong demand for premium accommodations hints at a trend likely to persist throughout the year. The Midscale segment also performed positively, with a 1.5% rise in RevPAR, supported by a 0.5-point increase in occupancy to 55.6% and a 1.5% rise in ADR.
