May 2025: Europe's major markets are not the outperformers

Across the continent, the midscale and upscale segments continued to drive performance growth. With +2.6 and 2.4 OR points respectively, the midscale and upscale segments reported RevPAR growth of 5.1 and 6.2%.

Overall, average daily rates rose by 2.4% and OR by 1.6 points, enabling European hoteliers to record RevPAR growth of 4.7% compared to May 2024.

With warmer temperatures, public holidays in some markets and continued MICE and corporate activity, May saw hotel occupancy levels ranging from 69.26% in France to 83.46% in Poland, for an average occupancy rate of 74.9% across the panel sample.

European hotel trends: May 2025 - RevPAR par Hospitality ON 

Double-digit RevPAR increases again

Latvia attracted Russian customers eager to take advantage of milder temperatures and longer days. The destination boosted its RevPAR by 17.9% compared with May 2024. TO was up 6.3 points.

Greece was already a top performer in May 2024, and its rating continues to climb, with RevPAR up 14.9%. Occupancy rate is up 9.8 points (also the panel's highest increase), while average daily rates are stagnant at -0.3%.

Next up was Austria, whose mountains attracted tourists with a 14.8% increase in RevPAR. The 11.3% rise in average daily rates, combined with a 2.3-point increase in occupancy rates, boosted sales.

Poland and Germany were the last two countries to post RevPAR increases of over 10%, at 13.2 and 11.9% respectively.

Normalization in the biggest markets

Germany, which was among the worst performers in May 2024, is catching up, with a 6.2-point increase in occupancy rate and stable average daily rates, resulting in RevPAR growth of 11.9%. The hosting of the Champions League final undoubtedly boosted performance.

In the UK, the signs are for a slowdown, with OR stagnating at -0.1 points, ADR down and RevPAR down by 1.8%. It was the...