London’s Hotels Maintain Strong Profitability Despite Softer RevPAR in 2025
Central London hotels achieved 46.8% GOP margin and £135.5 GOP per room through disciplined cost control, despite 0.9% RevPAR decline and ongoing wage pressures.
Central London hotels achieved 46.8% GOP margin and £135.5 GOP per room through disciplined cost control, despite 0.9% RevPAR decline and ongoing wage pressures.
The prestigious awards ceremony moves from London to Paris for the first time since 2023, with extended voting periods and new Academy leadership.
Study of 2,502 travelers shows 29% of international visitors and 39% of UK residents would avoid destinations with visitor taxes.
RevPAR surged 23.2% year-over-year driven by events including Imm Cologne trade fair, STICKS & STONES career fair, and entertainment events.
WTTC data shows UK tourism growth at 4.3% lags 36% behind global average of 6.7%, with country already ranking 113th for price competitiveness.
The sector contributed $11.7 trillion to global GDP in 2025, with 1.5 billion international travelers marking the strongest year on record.
CoStar data shows February occupancy will hit 77.9%, the highest on record for Milan, with ADR jumping 48.1% year over year.
International arrivals rose 4.6% to 37 million, but infrastructure strain and a 29.8% tax burden on gross room rates squeezed hotel profitability despite revenue growth.
Eastern and Southern Europe lead profit growth while Western and Northern regions face margin pressure from rising labour and operational costs.
RevPAR jumped 7.8% year-over-year with New Year's Eve hitting record occupancy of 93.3% and the highest ADR since the 2024 Olympics.
Euromonitor's annual index shows global city tourism grew 8% to 702 million arrivals, with Asia Pacific leading at 10% growth and Bangkok topping visitor numbers at 30.3 million.
The UK hotel sector enters 2026 with a sense of resilience and renewed confidence. Despite a backdrop of economic headwinds and rising operational costs, the market continues to demonstrate stability - supported by resilient international demand, event-led travel, and a steady recovery in domestic leisure.
Visitor arrivals continue to grow, reflecting sustained demand in key international markets. According to the Bank of Greece, international arrivals increased by 4.1% YTD August 2025/24. The first four months recorded +5.8%, while May and June showed temporary declines of –2.7% and –1.7% respectively. However, performance strengthened in the peak season, with +6.4% in July and +8.1% in August.
Known for pairing candour with data-driven clarity, the HotStats CEO recently unpacked the latest profitability trends shaping the UK and European markets — and the results were anything but comforting.
Driven by the Italian Grand Prix and Fashion Week, Milan posted its highest average daily rate (ADR) and revenue per available room (RevPAR) on record, according to preliminary data from CoStar, a global leading provider of online real estate marketplaces, information, and analytics in the property markets.
Several concerts, including Oasis, Lewis Capaldi, and Lady Gaga, lifted London’s hotel performance in September, according to preliminary data from CoStar, a global leading provider of online real estate marketplaces, information, and analytics in the property markets.
Gorgeous Smiling Hotels GmbH and Aspire GmbH are joining forces, consolidating their hotel operations and setting the stage for ambitious future growth. Their first deal as Gorgeous Smiling Hotels will be with the addition of Great2Stay Hotels, which is a hotel management company based in Augsburg. This move will create one of the largest operators in the DACH region portfolios of the year. The joint umbrella brand for all activities will be Gorgeous Smiling Hotels.
Helped by the ESC Congress, Madrid’s hotel industry posted its highest August performance levels on record, according to preliminary data from CoStar. CoStar is a leading provider of online real estate marketplaces, information, and analytics in the property markets.
PKF hospitality group announces the release of the 2025 edition of its “Hospitality Salary Compass 2025”, an annual benchmarking survey for the Viennese hotel market, now available to participating hotels. The survey provides the most up-to-date benchmarks for salary ranges across the upscale and luxury segments of Vienna’s hotel industry, offering operators, owners, and stakeholders critical insights into the city’s evolving hospitality market.
Croatia’s hotel sector has experienced notable development in recent years, driven by a steady rise in tourist arrivals and ongoing investment in new hospitality infrastructure. A significant hotel concentration is in central urban areas, particularly in proximity to key cultural landmarks, commercial zones, and transportation nodes.