European Hotel Market Shows Steady Recovery in October 2024
Table of Contents
Table of Contents
segment Performance Highlights Varying Trends
The budget segment faced challenges, with occupancy dipping and both ADR and RevPAR showing declines. In contrast, the economy segment remained stable, demonstrating resilience and consistent demand. The midscale segment showed steady improvements in key metrics, while the upscale segment emerged as the strongest performer, with robust growth in occupancy and RevPAR.Regional Variations Drive Overall Market Performance
Southern Europe emerged as a driving force behind the market’s recovery, with Italy and Spain leading the pack in occupancy and RevPAR growth. major cities benefitted from event-driven demand, with London and Munich seeing boosts thanks to events like the Digital Conversion EXPO. While Paris boasted high occupancy rates, it faced RevPAR challenges. Lisbon and Barcelona recorded growth, showcasing positive developments in these popular destinations. Eastern Europe also saw notable gains in Prague and Moscow,while Belgium and Switzerland experienced some challenges.
About HSMAI Europe
HSMAI – Hospitality Sales and Marketing association International – is a global organisation founded in the US in 1927. HSMAI Region Europe is the European arm of the organisation. HSMAI Europe aims to be a key influencer, pioneer, and the go-to industry resource for professional advancement, commercial strategies, and sustainability in the hospitality, travel, and tourism industry. With a strong focus on education, HSMAI has become the industry champion in identifying and communicating trends in the hospitality industry while operating as a leading voice for both hospitality and sales, marketing, and revenue management disciplines. Read More## European Hotel Market Shows Steady Recovery: An Interview with CBRE’s Hospitality Expert
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**Sarah Jones:** Welcome back to Archyde Insights. Today, we’re diving into the encouraging trends shaping Europe’s hotel industry.To help us understand the current landscape, we’re joined by [Alex Reed Name], a leading hospitality expert at CBRE.
Welcome to the show, [Alex Reed Name].
**[Alex Reed Name]:** Thank you for having me, Sarah.It’s a pleasure to be here.
**Sarah Jones:** so, let’s jump right in. CBRE’s latest European Real Estate Market Outlook predicts continued recovery in the hotel sector [[1](https://www.cbre.com/insights/books/european-real-estate-market-outlook-2024/hotel)]. Can you elaborate on the key drivers behind this positive trajectory?
**[Alex Reed name]:** Absolutely.the European hotel market is indeed showing signs of robust recovery. We’re witnessing stable performance across various segments, adn while growth is moderate, it’s certainly heading in the right direction. Domestic and intra-regional leisure travel have been the key pillars of this recovery, contributing significantly to occupancy rates and revenue.
**Sarah Jones:** This is interesting because we’ve seen international travel lagging behind somewhat. How is that impacting the European hotel market?
**[Alex Reed Name]:** You’re right, international long-haul travel has been slower to recover. Though, CBRE predicts a meaningful comeback in 2024 [[1](https://www.cbre.com/insights/books/european-real-estate-market-outlook-2024/hotel)]. Major events and attractions are expected to drive demand from international tourists, further boosting the sector’s growth.
**Sarah Jones:** That’s certainly encouraging news for the industry. Looking ahead, what are some of the challenges and opportunities that European hoteliers need to be aware of?
**[Alex Reed Name]:** The recovery is encouraging, but the industry continues to face headwinds.
Inflationary pressures, rising operating costs, and potential economic uncertainty remain concerns. On the opportunity side,there’s a growing emphasis on lasting and experiential travel,which presents exciting avenues for hoteliers to differentiate themselves and attract guests.
**Sarah Jones:** Fantastic insights, [Alex Reed Name]. Thank you so much for sharing your expertise with us today.
**[Alex Reed Name]:** my pleasure, sarah.
**Sarah Jones:** And to our listeners,stay tuned for more insightful discussions on the world of real estate.
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## European Hotel Market Shows Signs of Steady Recovery: An Interview with HSMAI Europe
**Archyde:** welcome to Archyde. Today, we’re diving into the latest trends shaping the European hotel industry. Joining us is [Alex Reed Name], a representative from HSMAI Europe, the leading voice in hospitality sales and marketing. [Alex Reed Name], thanks for being here.
**Alex Reed:** It’s a pleasure to be with you.
**Archyde:** The latest data from HSMAI shows a period of steady recovery for Europe’s hotel sector.Can you elaborate on the key takeaways from these trends?
**Alex Reed:** Absolutely. We’re seeing encouraging signs of a recovery, albeit a moderate one. Global occupancy rates are climbing, hitting 74.3% in October. While average daily rates have seen a slight dip, overall revenue per available room (RevPAR) is edging upwards thanks to continued demand.
**Archyde:** You mentioned varying trends across different market segments. Could you shed some light on how different segments are performing?
**Alex Reed:** It’s true—there’s a diverse landscape.The budget segment is facing some headwinds with lower occupancy and declining ADR and RevPAR. The economy segment, however, remains resilient. the midscale segment is demonstrating steady improvement,while the upscale segment is emerging as a real star,experiencing robust growth in occupancy and RevPAR.
**Archyde:** That’s interesting. What are some of the regional factors driving these market variations?
**Alex Reed:** southern Europe is leading the charge,
with italy and Spain showing particularly strong performance in occupancy and RevPAR growth. Major cities like London and Munich have benefited from events like the Digital Conversion EXPO, creating a boost in demand.
While Paris boasts high occupancy, RevPAR remains a challenge. We’re also witnessing positive developments in popular destinations like Lisbon and Barcelona. Eastern Europe, with gains in Prague and Moscow, is showing promise, while Belgium and switzerland are facing some headwinds.
**Archyde:** HSMAI has long been a champion for education and trend identification in the hospitality industry. What key takeaways would you give to hoteliers looking to navigate this evolving landscape?
**Alex Reed:** I’d say staying agile and adaptable is crucial.Understanding changing traveler preferences and leveraging technology to enhance the customer experience are increasingly critically important. HSMAI Europe is dedicated to providing the tools and resources hoteliers need to succeed in this dynamic market.
**Archyde:** Thank you, [Alex Reed Name], for providing such valuable insights.
**Alex Reed:** You’re very welcome. I encourage everyone to connect with HSMAI Europe and stay up-to-date on the latest trends shaping the future of hospitality.
