The summer vacation period is eagerly awaited every year by hoteliers operating around the Mediterranean basin. For the third edition of their monthly barometer, Business Immo and STR take a look at the dynamics to be expected in Europe's main leisure destinations.
"At the dawn of the 2025 summer season, the European hotel industry is positioning itself to anchor itself in a new normal, building on the excellent results achieved in 2024", observes Christina Choueifaty, Senior Account Manager at STR, when commenting on the performance of the European hotel industry over the first half of the year.
She is also delighted to see that "in terms of transatlantic demand, despite the difficult socio-economic context in the US, consumer demand for travel to Europe remains surprisingly strong, constituting an essential pillar for many destinations".
A phenomenon that particularly benefits the hotel industry in the Mediterranean zone, which "continues to assert its leadership, attracting a significant share of tourist flows thanks to its favorable climate and diversified offering". As a result, all leisure destinations have recorded positive growth in occupancy rates since the start of the year.
terms of average prices, some sunny markets recorded double-digit growth between January and May 2025 compared to the same period last year: the Turkish Riviera (+26%), the Marbella region (+14%), Sicily (+12%) and the Balearic Islands (+11%).
Far from being outdone, the Paris market (+6%) as well as Antibes, Cannes and Nice (+5%) also enjoyed positive momentum. "In France, the post-Olympic Games effect is making itself felt, with rather positive trends since the start of the year and booking prospects up on last year.
"Despite an encouraging start to the year, the context remains uncertain, not least due to multiple political tensions, and we are still approaching this year with caution," warns Christina Choueifaty.
An analysis of forecast booking growth over the next 90 days, to June 24, 2024, reveals a contrasting picture on a continental scale. While markets such as Paris, Zurich, Milan and Prague are forecasting 3% growth in bookings over the next three months, others are expected to stagnate (London, Amsterdam or Madrid) or even decline (Brussels, Dublin or Vienna).
In Mediterranean destinations, Sardinia (+4%), Sicily (+4%) and Antibes/Cannes/Nice (+1%) are expected to see their bookings rise over the next 90 days. This is in contrast to Barcelona (-5%) and Rome (-4%), where STR anticipates a downward trend.
Q3 2025, STR anticipates a slight decline in occupancy rates (-0.8%) on a continental scale, which will drive RevPAR down (-0.1%) despite a rising occupancy rate (+0.7%). By contrast, European hotel business should return to growth in the final quarter of the year, with RevPAR up by 1.7%.
This momentum could reach its peak in Q1 2026, with RevPAR up 2.7%, driven by a rising average price (+0.8%), before slowing over the following two quarters, albeit still in positive territory.