March 2023: in the South, the European hotel industry is budding, in the North, it is stationary

Although occupancy is still below 2019 levels (-3.5 points in March), ADRs are still growing (+17.5%) and thus, at the global level, the activity is up (+11.6% RevPAR).

All ranges show relatively similar trends with RevPAR increases ranging from 9% (in the budget segment) to 13.1% (in the economy segment). Overall, the economy properties show the smallest gap in terms of occupancy (-2.1 points) but the top end segment, which has long suffered from the health crisis, is now showing relatively similar levels (-4.5 points). In terms of ADR, however, while all ranges showed a 16% increase, the upper-upscale segments stood out slightly with over 20% growth.

Hungary, which is still affected by hyperinflation, posted RevPAR growth of 60.4%, followed by Poland with 22.6%. Although this increase is explained by an ADR increase of more than 77% for Hungary, both countries show "acceptable" delays in OR with only -3.5 points for Poland and -5.6 points for Hungary.

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The countries of Southern and Western Europe are doing best: with an increase of 19.5%, Italy has the highest growth in activity (apart from Hungary and Poland). France follows this trend with a 16.6% increase in activity, driven by a 19.9% increase in its ADR and a gap of only -1.7 points in terms of occupancy.

The United Kingdom recorded a 14.6% increase in RevPAR and the return to a balanced occupancy rate is remarkable (-0.9 points of variation between March 2023 and March 2019).

With the arrival of the good weather, Spain and Portugal are entering a period favourable to tourist stays and are thus posting 14.6% and 15% increases in activity respectively. Further east, Greece is following a more restrained but encouraging trend with +9.6% of activity compared to the pre-COVID...