Europe Hotel Performance Update
Analysis by Brannan Doyle
 Europe Hotel Performance Update
|
 Europe Hotel Performance Update
|
Most major European markets saw year-over-year (YoY) performance growth in February 2025, ranging from subdued to substantial. In some countries – France being a notable example –revenue per available room (RevPAR) grew YoY for all major markets. Elsewhere, countries saw gains in some markets offset by sluggish performance in others.
In plotting RevPAR growth by occupancy contribution versus rate contribution, a few noticeable trends emerge. The RevPAR lift in France was driven entirely by hoteliers’ pricing power, even at the expense of a modest dip in occupancy compared to February 2024. In Denmark, the opposite was true – occupancy grew roughly six percentage points (thanks to a more than a 10% increase in demand), while average daily rate (ADR) slid downward 3.5%. Turkey is intentionally omitted from the chart below, with a greater than 20% increase in room rates for February driven chiefly by inflation.
Hungary led in RevPAR growth with sizable contributions from both rate and occupancy. There’s likely a combination of factors at play here; occupancy in Hungary for February 2024 was unusually low compared to 2023, making the upward trend in 2025 more pronounced. And with many markets in western Europe experiencing overtourism and an increase in compressed room nights, travelers from overseas may be pushing deeper into Europe seeking more affordable rates and convenient accommodations.
Europe Hotel Performance Update
|
When scanning Europe’s major markets, Frankfurt’s February performance dominated the field. Ambiente, a major trade show for consumer goods, shifted from late January in 2024 to mid-February in 2025 — lifting both occupancy and pricing power for the month. French markets continue to push rates, resulting in RevPAR gains across the country, even exceeding +15% in some markets. A couple of Italy’s major markets saw consistent RevPAR increases as well, with Rome gains driven mainly by rate growth and Milan boosting occupancy by a healthy margin.
In Spain, most markets saw healthy RevPAR gains, with Barcelona being the notable exception. The shift of the Mobile World Congress from late-February to early-March was a damper on February’s metrics for Barcelona and for the entire country. Spain’s March performance will reveal the offset.
Istanbul’s RevPAR growth of 25% was rate-driven and had a significant impact on Turkey’s overall performance. It is fair to attribute much of this growth to the inflation seen across Turkey.
In Hungary, the trajectory in Budapest, however, is more weighted toward occupancy gains year over year. With HUNGEXPO bringing a number of mid-sized trade fairs to Budapest each February, this could be a trend attributable to increased commercial demand in the nation’s capital, which we’ll be eager to follow as the high season of large conferences and expos draws near.
Europe Hotel Performance Update
|
Check back next month for a dive into performance across the MEA region.
About CoStar Group, Inc.
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with thirteen million average monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. OnTheMarket is a leading residential property portal in the United Kingdom. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France's leading commercial real estate news service. Thomas Daily is Germany's largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group's websites attracted over 163 million average monthly unique visitors in the third quarter of 2024. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
This news release includes "forward-looking statements" including, without limitation, statements regarding CoStar's expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that future media events will not sustain an increase in future occupancy rates. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar's filings from time to time with the Securities and Exchange Commission, including in CoStar's Annual Report on Form 10-K for the year ended December 31, 2023 and Forms 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024, and September 30, 2023, each of which is filed with the SEC, including in the "Risk Factors" section of those filings, as well as CoStar's other filings with the SEC available at the SEC's website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
Click here to view the original version of this article.
STR
https://str.com
735 East Main Street
USA - Hendersonville, TN 37075
Phone: (615) 824-8664
Fax: (615) 824-3848
Email: info@str.com
IHIF Preview: UK and Ireland hotel occupancy at pre-pandemic levels
STR Weekly Insights: 16-22 March 2025
U.S. hotel results for week ending 22 March
