According to recent data from HSMAI Europe and MKG, the region experienced a blend of strong gains and slight setbacks. Notably, Latvia, Greece, and Austria stood out with remarkable revenue increases, while key players such as the United Kingdom and France recorded more modest results.
Growth in the midscale and upscale hotel segments played a major role in driving performance. Occupancy rates in these segments rose by 2.6 and 2.4 percentage points, respectively. As a result, revenue per available room (RevPAR) increased by 5.1% for midscale and 6.2% for upscale hotels. Across the board, the average daily rate (ADR) rose by 2.4%, while overall occupancy climbed by 1.6 points, leading to a total RevPAR increase of 4.7% compared to May 2024.
The average occupancy rate across the sample was 74.9%. France reported the lowest occupancy at 69.26%, despite hosting several events, while Poland achieved the highest at 83.46%. Although occupancy in France dipped slightly by 0.3 points, hoteliers managed to raise ADR by 2.4%, resulting in a modest 1.9% growth in RevPAR.
Latvia experienced the most significant boost, with RevPAR jumping by 17.9%. This surge was supported by a 6.3-point increase in occupancy, attributed to a rise in tourism from Russia, thanks to favorable weather and longer daylight hours.
Greece, already a top performer in May 2024, maintained its upward trajectory with a 14.9% increase in RevPAR. The country saw the highest rise in occupancy—up by 9.8 points—while ADR remained relatively stable with a slight dip of 0.3%.
Austria also showed strong results, achieving a 14.8% RevPAR increase, driven by an 11.3% growth in ADR and a 2.3-point rise in occupancy, as travelers flocked to its scenic mountainous regions.
Poland and Germany joined the group of high performers, with RevPAR increases of 13.2% and 11.9%, respectively. Germany benefited from a 6.2-point jump in occupancy and a stable ADR, thanks in part to the UEFA Champions League Final.
On the other hand, the United Kingdom faced a downturn, with a slight decline in occupancy (-0.1 points), falling ADR, and a 1.8% drop in RevPAR—the only market to report a negative performance. Meanwhile, Spain capitalized on favorable weather, recording a 9.5% increase in RevPAR through a combination of higher occupancy (+1.2 points) and an impressive 8% rise in ADR.
In summary, May 2025 brought a varied landscape for Europe’s hotel industry. While several countries celebrated significant growth, others, particularly some of the continent’s traditionally strong markets, encountered moderate or stagnant results. These findings highlight the importance of market-specific factors and the dynamic nature of the hospitality sector across Europe.
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Photos Source: ChatGPT
