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- The European hotel market experienced moderate growth with overall stability in October 2024, particularly in Southern Europe and major cities.
- The upscale segment outperformed other categories, attracting high-value travelers and showcasing robust growth.
According to HSMAI Europe, the European hotel market in October 2024 displayed overall stability and moderate growth across various segments. The global occupancy rates improved slightly to 74.3%, marking a 1.0-point increase compared to the previous year. However, the Average Daily Rate (ADR) saw a minor decline of 1.0%, settling at €132.7. Despite this, the Revenue Per Available Room (RevPAR) experienced a marginal year-on-year growth of 0.4%, reaching €98.6, indicating a steady demand.
The industry faced particular challenges in the budget segment, with occupancy rates dropping 1.0 points to 67.2% compared to 2023. The ADR in this category also showed a significant decline of 6.5% from the previous year. Following a similar downward trend, RevPAR decreased by 7.9% in 2023 and 2.1% in 2022, underlining ongoing struggles in this sector.
On the other hand, the economic segment displayed a certain level of stability. Occupancy in this segment slightly increased by 0.8 points compared to 2023. While the ADR experienced a slight decline of 0.8% from the previous year, it recorded a growth of 5.4% compared to 2022. The RevPAR in the economy segment grew marginally by 0.3% over 2023 and showed a more substantial increase of 5.5% from 2022, signifying consistent demand and resilience.
The midscale segment witnessed steady improvements in key metrics. Occupancy in this category increased by 1.5 points from 2023. Although ADR declined slightly by 2.0% from the previous year, the RevPAR remained stable with a 0.1% rise compared to 2023 and a solid 6.0% improvement over 2022. These numbers reflect a gradual recovery and a stable performance trajectory for the midscale segment.
The upscale segment emerged as the strongest performer, with occupancy rising by 1.7 points compared to 2023. Despite a marginal decline of 0.2% in the ADR, the RevPAR showed the highest growth across all segments, with a 2.1% rise over 2023 and a robust 9.8% increase from 2022. These figures are driven by the segment’s sustained appeal and ability to attract high-value travelers.
In October 2024, Europe’s hotel market steadily recovered, driven by strong performances in Southern Europe and event-driven demand across major cities. Italy and Spain led the pack with high occupancy rates and robust RevPAR growth.
Paris excelled in occupancy but faced RevPAR challenges, while Lisbon and Barcelona recorded growth. Business hubs like London and Munich benefited from events such as the Digital Transformation EXPO. Eastern Europe saw notable gains in Prague and Moscow. Despite some challenges in Belgium and Switzerland, the overall market reflected resilience and growing demand.
