NLNº 36Hotels & Groups
STR Data Points to European Hotel Growth in February 2025
CoStar's STR analytics reports promising growth for European hotels in February 2025, the sector's first broadly positive monthly reading of the year.
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CoStar's STR analytics arm has flagged promising growth across the European hotel industry for February 2025. The headline finding, reported via Hotel News Resource, marks the sector's first broadly positive monthly reading of the year after a sluggish January across much of the continent.
STR, the industry-standard benchmarking service owned by CoStar, compiles performance data from thousands of participating hotels across Europe. Its monthly reports track occupancy, average daily rate (ADR) and revenue per available room (RevPAR) — the three numbers operators, lenders and investors watch most closely.
What does the February reading mean for operators?
A positive February matters more than it looks. It's the last quiet month before the spring business-travel season and the Easter booking window, so demand strength here tends to set the tone for the second quarter. February 2025 also benefited from a later comparison base in some markets, but the STR designation of "promising growth" points to genuine momentum rather than calendar effects alone.
For European operators, the practical readout is straightforward: pricing power appears to be returning after two years of rate-led recovery that in several markets outpaced occupancy gains. Investors screening hotel assets will treat a confirmed February uptick as supporting evidence for the trading forecasts underpinning 2025 transactions.
The data arrives amid a mixed macro backdrop. Inflation across the eurozone has cooled from its peaks, and European Central Bank rate cuts through 2024 have eased financing conditions for leveraged hotel owners. That combination — softer debt costs plus recovering trading — typically feeds directly into asset values and refinancing conversations.
What happens next?
STR publishes monthly European performance updates, and the March 2025 release will show whether February's growth held through the Easter period. Operators should watch the split between rate and occupancy: rate-driven growth flatters RevPAR, but occupancy-driven gains signal healthier underlying demand. Full-year European forecasts from STR and CoStar, typically updated in the spring, will confirm whether February marks a trend or a one-month blip.
via Google News: European hotel industry (Source)
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Correspondent covering money, funding and market shifts around European hospitality industry at Eurotables Report.
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