Europe

In January 2026, Amsterdam’s VAT rate for overnight accommodation is expected to increase from 9% to 21%, affecting a range of lodging options from hotels to B&Bs to short-term rentals. Heading into a year of change, hotel performance in the market has left something to be desired. 

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.

Kelsey Fenerty, Manager of Analytics at STR, gives a quick overview of the global market forecast. 

An extended version of our Global Market Forecast Assumptions analysis can be found here.

Analysis by M. Brian Riley

Driven by the surge in post-pandemic travel, overtourism became a major talking point across Europe in 2023 and continued to dominate discussions into 2024. With a year-plus of data now available, we can assess the effectiveness of various countermeasures and their impact on hotel performance.

Analysis by Brannan Doyle

Most major European markets saw year-over-year (YoY) performance growth in February 2025, ranging from subdued to substantial. In some countries – France being a notable example –revenue per available room (RevPAR) grew YoY for all major markets. Elsewhere, countries saw gains in some markets offset by sluggish performance in others. 

Welcome to Amsterdam’s 2025 rendition of the Independent Hotel Show.

Analysis by Christina Choueifaty and Kelsey Fenerty

The Southern European hospitality market experienced yet another year of high performance. In 2024, regional RevPAR increased 9.8% year over year as the allure of beaches and historic cities attracted leisure travelers from around the globe. This robust demand lifted average daily rate (ADR) 8% to EUR175 – the highest regional rate in Europe for the year.

Analysis by Claudia Alvarado Cruz and Chris Klauda

Taylor Swift’s Eras Tour took Europe by storm this summer, with 47 concerts across 17 cities over a 15-week period from May to August. Swift played consecutive three-day concerts in most cities, which were primarily over a weekend, not saying “so long, London” until she returned for a second run in the city. 

Analysis by William Anns

With the summer months fast approaching, sports fans are looking at the 2024 UEFA European Football Championship, which kicks off on Friday, 14 June. Set to take place across multiple locations in Germany, the annual football tournament is expected to affect hotel performance just as much as football fans across the continent. Utilizing Forward STAR data, the markets are already showing spikes in hotel bookings on and around the match dates.

Analysis by Kelsey Fenerty

Note: All figures reported in local currency

Taylor Swift kicked off the second international leg of her wildly successful Eras Tour in early February, and Asia Pacific hoteliers were, in fact, “ready for it”. The seventeen-night leg gave a much-needed performance boost to Tokyo, Sydney, Melbourne, and Singapore hotels.