European hotel performance: the best of both worlds in September

The start of the new school year has given European hoteliers a boost, with corporate and leisure customers helping to sustain performance. Overall, RevPAR rose by 2.9%, driven primarily by the upscale and luxury segment, which grew by 5%. The midscale segment also recovered, with RevPAR up 2.2%. In terms of average daily rates, the overall increase was +1.5%, which is below the inflation rate recorded in September in the eurozone by Eurostat: +2.2%. This indicator rose to +2.6% when extended to the European Union as a whole. In terms of occupancy, the trend is positive, with an increase of 1.1 points and, in particular, +1.7 points in the upscale and luxury segment.

The largest markets are in the green 

In the United Kingdom, occupancy rose by 2.6 points compared to September 2024, enabling hoteliers to increase their average prices by 4.2% for a RevPAR that grew by 7.5% compared to the same period in 2024. It should be noted that the results are also positive compared to September 2023, with RevPAR up 4.9. Numerous business and consumer events helped fill hotels and support an increase in average prices.

September was a good month for Spain, with the return of events such as conferences and seminars, coupled with the destination’s appeal to leisure customers. RevPAR grew by 4.4%, driven by a slight increase in OT of 1.2 points and an increase in ADR of 3.2%.

The same dynamics are at work in France, which posted a 1.7% increase in RevPAR. Fashion Week attracted visitors and professionals at the end of September. However, the overall OR for France, which stabilized at 0.2 points, indicates that not all market dynamics were equal. Fashion Week in Paris led to a 5-point increase in TO over the period.

Germany remains the exception that proves the rule, as it still cannot rely on its domestic market to support hotel activity. RevPAR was down 4.4% and average daily rates fell by 4.6%.

The case of Central Europe

The Czech Republic hosted numerous trade shows and conferences in Prague throughout the month. This corporate clientele, combined with leisure travelers attracted to the Czech capital during the Indian summer, boosted occupancy by 10.2 points (+3.3 compared to 2023) and pushed prices up by 5.2%, leading to a 19.9% increase in RevPAR.

In Poland, the indicators are also positive, with RevPAR up 10.3%, driven by OR at +3.8 points and ADR at +5%. Here again, the market was supported by the return of conferences and conventions, coupled with the presence of leisure customers. 

The Ars Electronica Festival, held in Linz from September 3 to 7, welcomed 122,000 visitors, filling Austrian hotels to capacity and leading to a 4.2% increase in occupancy rates and a 6.7% increase in RevPAR. Although there was a busy events calendar in Austria in September, hoteliers chose to stabilize their average daily rates at +1.2%.

In Switzerland, despite a 2.4% increase in occupancy rates, hoteliers chose to slightly reduce average daily rates by 1%, unable to capitalize on a busy corporate events calendar unlike their European neighbors.

When corporate and leisure customers come together

RevPAR rose by 9.3% in Italy (+7.5% compared to September 2023) with occupancy up 2.7 points. The glass festival in Venice and Murano and the boat show in Genoa attracted a high-spending clientele, enabling hoteliers to increase their ADR by 5.7%. 

The same is true in Portugal, where events have diversified the customer base, with street entertainment throughout September in Lisbon, for example, alongside numerous congresses and conferences. However, the momentum is less pronounced than in the Italian market, with OR down 0.8 points.

The season ended in Greece with RevPAR stable at 0.2%. Hoteliers managed to maintain this thanks to average daily rates up 1.9%, but OR fell by 1.4 points.

Clear skies for small markets usually driven by business customers

OR was up 3.5% in Belgium, 3.2% in the Netherlands, and 1.6% in Luxembourg. These three markets saw their OR increase in September, opting for a very slight price increase, which does not even keep pace with inflation except in Luxembourg, where ADR was down 0.3%.

A busy start to the new season for European destinations, which is breathing new life into many markets.

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