• In February 2025, hotel performance increased in most major European markets, with outstanding growth in France, Denmark, and Hungary.
• Major events and trade shows significantly impact local market performance, as seen in Frankfurt’s increased occupancy during the Ambiente trade show.

In February 2025, most major European markets demonstrated year-over-year performance growth, with France showing significant growth in revenue per available room (RevPAR).

Hoteliers’ pricing power drove the increase in France. In Denmark, the growth was due to a six percentage point increase in occupancy despite a slight drop in the average daily rate. Hungary experienced impressive RevPAR growth, resulting from both rate and occupancy contributions.

Frankfurt led the European markets due to the shift of the Ambiente trade show from late January in 2024 to mid-February in 2025. This change boosted both hotel occupancy and pricing.

French markets also continued to push rates, leading to RevPAR gains across the country. Spanish markets generally saw healthy RevPAR gains, although Barcelona’s metrics were affected by the shift of the Mobile World Congress from late February to early March.

In Turkey, Istanbul’s RevPAR growth of 25% significantly impacted the country’s overall performance, with the increase largely attributed to inflation.

However, Hungary’s capital, Budapest, showed more weight towards occupancy gains year over year. The HUNGEXPO, which brings several mid-sized trade fairs to Budapest each February, may contribute to this trend. This increase in commercial demand is a trend to watch as the season of large conferences and expos approaches.