June 2025: where is the growth? In the markets benchmarked in this monthly review, RevPAR growth is becoming increasingly rare. With the high season now underway, prices are less flexible in the leisure markets, which had been driving European growth for several months. On the corporate side, the trend is also flat or even negative, except in the east of the continent.
Occupancy rates are stable across all segments. Overall, Europe posted a 1.4% increase in RevPAR, with occupancy up 0.5 points. In terms of average prices, which had been driving RevPAR growth for many months, hoteliers recorded a slight decline of 0.8%. The eurozone posted an inflation rate of 2% for June 2025, according to Eurostat.
Two of the largest European markets are losing momentum
The German market posted a 20.3% decline in RevPAR compared to June 2024, when performance was boosted by the Euro 2024 football tournament. However, the comparison with 2023 is also not favourable for the destination in terms of performance. RevPAR is down 7% compared to June 2023, with ADR down 2.7% (vs. 2023) and OR down 3.3 points. Year to date, Germany is in the red with RevPAR down 1.2% compared to the first six months of 2024.
We had anticipated this normalisation in the German market through a sequence of downward trends,. Adrien Lanotte, senior data analyst at MKG
This is also the case in the United Kingdom, with RevPAR down 0.8% compared to the period from January to June 2024. This other market, which drives the dynamics of Europe as a destination, has been slowing down since the beginning of spring. Despite stable occupancy rates, sluggish demand is preventing hoteliers from increasing their average daily rates, which are down 3.4% compared to June 2024. As a result, RevPAR is down 3.3%.
Is the sun too hot for southern Europe?
Seaside destinations have been driving European performance since the beginning of 2025, but the curve is slowing down and even reversing.
‘The Spanish market, which has been one of the drivers of outperformance since the beginning of the year, can no longer push prices up during the high season, when summer customers are not prepared to buy at any price.” Comments Adrien Lanotte
- 0.8 percentage points to 81.3% and stable average daily rates at +1.7% enabled Spain to post a slight increase in RevPAR of +0.8%.
Occupancy rates are also down slightly (-0.8 points) in Portugal, which had also been performing well since the beginning of 2025, reaching 78.6% in June 2025. Despite average daily rates remaining at +0.7% compared to June 2024, RevPAR is down -0.3%.
In Greece OR has fallen below 80%. Average daily rates also fell, leading to a 4.1% decline in RevPAR.
Still benefiting from the influx of pilgrims in this jubilee year of 2025, Italy is doing well with an occupancy rate of 80.8% in June 2025, up 2.1 points compared to last year. Average daily rates remained stable at +2%, allowing RevPAR to increase by 4.7%.
The French market is once again driving European performance
+3.5 points in occupancy, driven in part by the Paris market. Strong demand, particularly from foreign customers, has enabled hoteliers to increase their average daily rates by +8.7%. This performance has pushed RevPAR up by +13.8%, the best growth in the panel.
The eastern markets are in the black
Poland, Latvia and the Czech Republic posted RevPAR increases of +8.9%, +4.9% and +12.6% respectively. While Poland and the Czech Republic were able to count on OR to support this growth, in Latvia only average daily rates are in the black. This is the second strongest ADR growth in the panel after France.
Mixed performances have been evident for several months within the European destination. The corporate customer engine had stalled, but what if the leisure customer engine also breaks down? One of the growth levers lies in additional offers made to customers in order to increase their average expenses.
Article by MKG
About HSMAI Europe
HSMAI – Hospitality Sales and Marketing Association International – is a global organisation founded in the US in 1927. HSMAI Region Europe is the European arm of the organisation. HSMAI Europe aims to be a key influencer, pioneer and the go-to industry resource for professional development, commercial strategies and sustainability in the hospitality, travel and tourism industry. With a strong focus on education, HSMAI has become the industry champion in identifying and communicating trends in the hospitality industry while operating as a leading voice for both hospitality and sales, marketing, and revenue management disciplines.
