May 2024 was synonymous with a general upturn in European sales. The picture is more mixed in May 2025, with the underdogs on the offensive and Europe’s performance dynamics continuing to evolve strongly.
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…
