European hotels reported lackluster RevPAR growth in June for three key reasons: actual occupancy levels, the weather, and difficult event comparisons.
When it comes to actual occupancy, very high levels, as seen in most Western European countries, can be difficult to grow or even maintain in some cases.
— Source: STR
Small year-over year (YoY) occupancy declines in high-occupancy countries are a normal occurrence, although persistent or substantial declines may point to other factors impacting hotel demand. However, higher-occupancy markets or countries will typically have greater volatility in year-over-year changes.
Unseasonable heat drove travelers out of Hungary and the U.K. and towards cooler Nordic countries like Sweden and Denmark.
— Source: STR
Southern European countries continued to post strong occupancy and ADR growth despite the heat. A combination of beach access and long-haul travel – North American summer travel typically takes place during June and July, as compared to Europe’s July and August – underpinned strong hotel performance in Portugal, Spain, and Italy.
Finally, June was a challenging month for YoY comparisons for many European markets. 2024 was a spectacular year for events, and many YoY RevPAR declines can be attributed to the return to a more ‘normal’ event calendar this year.
Three major international events – the Champions League final in London, the Eras tour in the U.K. and Ireland, and the UEFA Euros tournament in Germany – lifted hotel performance in June 2024 and led to RevPAR declines across host markets in 2025.
While June was a soft month, July holds more promise as the start of the European summer holiday season lifted performance across the continent.
— Source: STR
UEFA Euros offsets will impact performance in Munich and Berlin this month, and Paris and the surrounding areas will be challenged by the 2024 Olympic Games comparisons.
New events are still taking place, however. Black Sabbath’s farewell concert, Back to the Beginning, lifted Birmingham RevPAR at the start of July. One week later, Oasis kicked off their much-anticipated Live ’25 tour to a sold-out Cardiff crowd, before carrying out five hometown shows in Manchester.
— Source: STR
High occupancy levels and strong rate growth across both dates suggest that Oasis concerts will lift performance across the U.K. for the next few months.
About CoStar Group, Inc.
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with thirteen million average monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. OnTheMarket is a leading residential property portal in the United Kingdom. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attracted over 163 million average monthly unique visitors in the third quarter of 2024. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
This news release includes “forward-looking statements” including, without limitation, statements regarding CoStar’s expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that future media events will not sustain an increase in future occupancy rates. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2023 and Forms 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024, and September 30, 2023, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
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