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European hotel performance in July 2025: The rules of the game are changing

  • e.tulliez
  • 26 August 2025
  • 2 minute read
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This article was written by HospitalityOn. Click here to read the original article

image

Part of this clientele, who can still plan summer vacations, is turning to alternative accommodations like seasonal rentals between private individuals. Eurostat reported a strong growth in bookings via seasonal rental platforms in 2024, a trend expected to continue into 2025. See our article on this topic on Hospitality ON.

Overall, the occupancy rate across all categories is up by 1.3 points compared to July 2024, with the mid-range and upscale segments showing the best RevPAR growth (respectively +2.1 and +1.8 points). In terms of average daily rates, however, the trend is downward, with a 4% decrease in the analyzed pool and a larger decline for the economy segment, whose clientele is more price-sensitive (-5.4%). Overall, the European hotel market loses 2.3% in RevPAR compared to July 2024, with the most significant losses naturally occurring in the economy segment.

European hotel trends: July 2025 – RevPAR par Hospitality ON

The sun shone, but not everyone took advantage of it

RevPAR in Spain grew by 3.3%, driven by a stable occupancy rate (up by 0.5 points) and maintained ADR (+2.7%). Coastal destinations continue to attract a loyal tourist clientele. However, professionals’ enthusiasm is waning as growth slows significantly.

HAMA Releases Spring 2025 Industry Outlook Survey Results
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HAMA Releases Spring 2025 Industry Outlook Survey Results

A different story in Portugal and Italy. Italian hoteliers saw their occupancy rate drop by 1.1 points despite a 4.4% decrease in ADR. These performance declines led to a 5.4% drop in RevPAR. In the Portuguese market, occupancy remained stable with a 0.8-point increase, while average daily rates decreased by 2%, resulting in a 1% drop in RevPAR.

Greece capitalizes on its appeal for the summer season and posts the highest RevPAR growth at +15.4%, driven by a 20.7% increase in ADR, despite a 3.7-point drop in occupancy. Outside of smaller markets like Switzerland, Latvia, and Luxembourg, only Greece and Spain have…

Please click here to access the full original article.

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