Overview

• Across Europe in July 2025, occupancy rose by 1.3 percentage points year on year, yet average daily rates fell 4% and RevPAR declined 2.3%, according to HSMAI Europe and MKG.
• Performance diverged by segment, with the economy tier posting a 5.4% drop in ADR as mid-range and upscale properties eked out modest RevPAR gains.
• Greece led regional outperformance with RevPAR up 15.4% on a 20.7% ADR jump despite a 3.7‑point occupancy drop, while Spain grew RevPAR 3.3% with ADR up 2.7%.
• France’s RevPAR fell 5% as hoteliers cut ADR 8% despite a 2.3‑point occupancy lift, and Germany’s RevPAR declined 9.1% versus last year’s Euro 2024‑boosted benchmark even with event support in July.
• The United Kingdom returned to growth with RevPAR up 3.9% on a 2.6‑point occupancy gain, as Eurostat data show strong 2024 expansion in seasonal rental bookings continuing to pressure hotels into 2025.