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European hotel performance splits as travel trends remain unsteady

European hotel industry experts shared the latest information available on hotel performance, investor activity and travel trends

Apr 9, 2025

In uncertain times, data offers a reliable compass for hoteliers. At the International Hospitality Investment Forum EMEA, European hotel experts presented insights on hotel performance, investment activity, and travel trends to help the industry navigate current market complexities.

Key takeaways

  • Demand & performance: Hotel demand has topped 2019 levels for 24 months; occupancy is up 2%, ADR up 3%, boosting RevPAR across major cities.
  • Regional trends: Southern Europe leads in recovery and ADR growth (50–60% over 2019), while Central/Eastern Europe sees growth due to availability.
  • Hotel classes: Economy/midscale led in 2023; luxury takes over in 2024 with 1.5% supply growth.
  • Profitability: Strong RevPAR and ADR correlate with 30–40% GOPPAR, though some countries stay below €60.
  • Growth driver: ADR remains the main engine of RevPAR growth.
  • U.S. vs Europe: The U.S. shows more balanced growth across classes, aided by major events and travel demand.

Get the full story at CoStar

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