In December, European hotels put on their brightest lights 

In December, European hotels put on their brightest lights: RevPAR rose by +6.1% to €80.2, driven primarily by a rebound in demand (occupancy +2.2 pp to 63.7%), while average rates also increased (+2.4% to €125.8). In this festive month, hoteliers found demand’s “stocking” well filled, with performance hinging largely on each market’s ability to capture both volume and the rate premium associated with “prime” customers. December therefore acted as a final year‑end “sparkle”, carried by the Spain–France–Italy trio and a very dynamic Alpine arc, while more corporate‑led markets such as Germany and parts of the Benelux closed the year on mixed trajectories.

Stars of the month: Spain, France, Italy… and the Alpine arc 

Among the major markets, France — which has at times struggled across 2025 — clearly joined the leading pack in December, moving at the same pace as the Mediterranean arc (RevPAR +8.5%), bringing it closer to Spain (+5.7%) and Italy (+7.3%) than to North‑Western European markets.

In Spain, the drivers remain urban: Madrid (+9.1%) maintains a strong profile, Bilbao (+14.7%) continues to perform well, while Barcelona appears to have entered a phase of ADR contraction. In Italy, Rome (+14.5%) leads the way, while Venice saw strong demand over the Christmas period (+10.8%).

In the same “year‑end sparkle” spirit, the Alpine arc posted some of the strongest accelerations: Austria +13.2% (with Vienna +14.1% and Salzburg +5.8%) and Switzerland +9.2% (including Zurich +7.7%). This is a textbook illustration of a month where the mix of seasonal events — Christmas markets, ski resort openings — combined with leisure demand and pricing power made the difference.

“Green” markets without being spectacular: UK, Benelux, Netherlands  

Behind the leading markets, several countries grew at a more measured pace, often thanks to volumes rather than rates. The UK remained in positive territory (+1.8%), but with less flair: London was almost flat (-0.3%), while regional cities such as Edinburgh (+7.7%) and Manchester (+4.7%) supported overall performance.

In the Benelux, trajectories diverged. Belgium (+6.9%, with Brussels +6.0%) enjoyed a welcome “holiday truce” in an otherwise uninspiring year, while the Netherlands remained in “pale green” (+1.2%), with Amsterdam stable (+0.2%) but Rotterdam up +7.4%, consistent with a strong year. Luxembourg maintained steady growth (+2.1%) despite more hesitant pricing trends.

Germany: a rebound in volumes, but not in rates 

After a choppy 2025, Germany returned to growth in December (RevPAR +3.3%), driven almost exclusively by volumes (occupancy +2.4 pp), while rates remained under pressure (-0.5%). Dispersion remains high: Hamburg (+4.2%) illustrates the rebound, while Düsseldorf (-2.2%) lagged, reflecting uneven demand across markets.

Central & Northern Europe: the sleigh keeps catching up 

Central Europe remains well oriented. Poland gained another +6.7%, with strong momentum in key markets such as Warsaw (+8.7%) and Kraków (+12.3%), while Gdańsk reached new highs (+18.6%). The Czech and Hungarian capitals also joined the festive momentum, with Prague up +12.1% and Budapest +5%.

In the North, Scandinavia remains volatile but stable overall, with Helsinki (+3.0%) supported by higher occupancy despite softer rates. The Baltic states have been among the most dynamic areas in 2025, even if monthly performance fluctuates; Latvia, for example, dropped in November (-11.8%) but remains one of the strongest performers year‑to‑date (+17.5%).

December’s “headwinds”: Portugal and some corporate‑led markets 

Unlike the leading markets, Portugal declined (-2.9%), weighed down by occupancy (-1.1 pp) and lacklustre pricing. The internal split is clear: Lisbon fell sharply (-10.8%), while Porto grew (+3.5%), illustrating a tougher year‑end for Lisbon’s corporate segment. A softening is also visible in other Southern European metro areas, such as Milan (+0.2%) and Barcelona (-2.6%).

2025: a “volume & leisure” year 

By year‑end, Europe closed 2025 on a moderately positive note: full‑year RevPAR rose +1.7%, and December provided a final year‑end “sparkle”. Southern Europe — especially Spain — and Central & Eastern European countries were the continent’s growth engines throughout 2025. North‑Western Europe delivered more moderate growth, and Germany stepped back compared with an exceptional 2024.

Most importantly, rising volumes (+0.9 pp in occupancy, with all countries up in FY25 compared with 2024) drove activity and RevPAR across the continent — an encouraging sign as hoteliers head into 2026.

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