Greek Hotels Lead Europe in Revenue and Occupancy Growth

Greek hotels topped the rankings among 16 European countries in May 2025, posting the highest growth in both revenue per available room (RevPAR) and occupancy rates, according to a new report by MKG Consulting.

The performance underscores Greece’s growing appeal as a tourist destination. RevPAR in Greek hotels surged by an impressive 14.9%—the sharpest increase across the countries studied—while occupancy rose by 9.8 percentage points, also a continental high. Meanwhile, the average daily rate (ADR) held steady with a slight dip of 0.3%, reflecting a deliberate strategy to maintain competitive pricing.

In real terms, the average RevPAR in Greece climbed to 154.70 euros in May 2025, up from 134.70 euros in May 2024. That figure places Greece second overall in Europe, just behind Italy, which reported a RevPAR of 162 euros. Switzerland followed in third with 141 euros, ahead of the Netherlands (140 euros), Portugal (134.50 euros), and Spain (129.50 euros).

Underdogs Outpace Traditional Powerhouses

Hotel performance across Europe was steady in May 2024, but more varied in May 2025. Traditional markets like France, the UK, and Spain saw mixed results, while countries like Latvia (+17.9%), Austria (+14.8%), Poland (+13.2%), and Germany (+11.9%) led growth. Germany’s gain was helped by the Champions League final, and Spain saw an 8% room rate increase and good weather.

Mild Growth Driven by Mid-Range and Luxury Segments

Across Europe, the hotel sector recorded a 4.7% increase in RevPAR, driven by a 2.4% rise in average daily rates and a 1.6-point boost in occupancy. The most significant contributors were mid-range and luxury hotels, which posted RevPAR gains of 5.1% and 6.2% respectively, alongside occupancy improvements of 2.6 and 2.4 percentage points.

The UK was the only market to register a decline in RevPAR (-1.8%), with flat occupancy levels and a drop in ADR rounding out a subdued performance.

Source: tovima.com