In February 2025, European resort efficiency displays a altering panorama, pushed by contrasting geographical dynamics and a gradual rebalancing of fundamentals. Whereas stability prevails throughout the continent as an entire, some areas are doing notably nicely, pushed by cyclical or structural elements.
There’s no fallacious be aware on the subject of the efficiency of European lodges by phase. Nor are there any flights of fancy, with OR stagnating at between -0.1 and 1.9 factors, relying on the vary. Boosted by worldwide prospects, the mid-market and upscale segments posted RevPAR progress of two.7% and three.2% respectively. The euro/greenback alternate price continues to be very beneficial for purchasers whose forex is pegged to the greenback. The funds and economic system segments are displaying excellent stability, with out but giving up on common each day charges.
A podium in Jap Europe
The three largest will increase in RevPAR have been in Jap Europe. Hungarian hoteliers boosted their RevPAR by 17% on the again of a 5.6-point enhance in OR and a 5.8% enhance in ADRs. Consequently, the vacation spot is closing in on the 60% occupancy mark, reaching 58.3%. Latvia ranks second by way of RevPAR progress, with a rise of 13.3% and the strongest OR progress at 10.2 factors. Nevertheless, as in 2024, the ADRs are down (-6.6%), making the vacation spot essentially the most aggressive of the panel noticed. Poland closes the efficiency podium with an 8% enhance in RevPAR, pushed by a 4.5% rise in ADR and a 2-point enhance in OR.
As Adrien Lanotte identified in his 2024 overview interview with Hospitality ON: I watched with some curiosity the rebound on the finish of the yr in Central and Jap Europe (Poland, Hungary, Czech Republic, and so forth.): this has but to be confirmed, however it might be fully logical for the development to proceed. In a context of budgetary arbitrage for Europeans, these locations are enticing for leisure prospects with decrease costs, and enterprise prospects with low cost labour. That is the place new mega-factories for batteries and different merchandise are being arrange, whereas they’re closing down elsewhere.
The mountains are boosting Alpine locations
+5.2% RevPAR in Austria, which welcomed 175,000 folks to the FIS Alpine World Ski Championships Saalbach 2025. +Austria’s RevPAR is up 2.2 factors. Switzerland can be benefiting from the attractiveness of its Alpine territory on the peak of the winter sports activities season, with OR up by 3.1 factors and costs logically stagnating, on condition that they’re the very best on the panel (€218.1).
As for France the mountains and the efficiency of Lyon, boosted by a lot of occasions, put the Auvergne Rhône Alpes area within the lead by way of RevPAR (excluding the Paris area).
Southern Europe: a slowdown in February, however a worth impact was anticipated
Spain and Portugal confirmed essentially the most pronounced slowdown, with a drop in customer numbers in each locations. Italy is doing nicely amongst Southern European locations, with RevPAR up by 5.9% (fifth finest efficiency on the panel). The primary a part of Trend Week in Milan (25 February), coupled with the Carnival festivities in Venice, which started on 22 February, and the internet hosting of a match in Rome within the 6 Nations Match, fueled progress.
Europe’s core markets are performing nicely
Germany is constant the upturn that started in January, with RevPAR up by 6.8% pushed by occupancy up by 2.3 factors and ADR up by 2.8%. The Netherlands, which suffered in January, is recovering with RevPAR up by 3.9%. In worth, it has the 4th highest RevPAR of the panel (€130.2). The vacation spot stays enticing regardless of the sharp enhance in vacationer tax.
The lights are additionally on within the UK, with RevPAR up 1.2%.
After a yr in 2024 by which efficiency was largely pushed by the financial local weather, the structural foundations of the resort enterprise in Europe are steadily shifting. The southern nations have caught up with the northern ones by way of common each day charges, leaving the best way clear for Jap European locations.
Article by MKG
About HSMAI Europe
HSMAI – Hospitality Gross sales and Advertising and marketing Affiliation Worldwide – is a world organisation based within the US in 1927. HSMAI Area Europe is the European arm of the organisation. HSMAI Europe goals to be a key influencer, pioneer and the go-to business useful resource for skilled growth, business methods and sustainability within the hospitality, journey and tourism business. With a robust concentrate on training, HSMAI has grow to be the business champion in figuring out and speaking tendencies within the hospitality business whereas working as a number one voice for each hospitality and gross sales, advertising, and income administration disciplines.
