Duetto and HotStats will be on-site at FITUR 2026, which takes place through Jan. 26 at IFEMA Madrid, to help shift the focus of European hoteliers from top-line growth to sustainable profitability as the region enters a more complex phase of the cycle.
Recent aggregated performance data from HotStats shows that the European hotel market is no longer moving in a single direction. November year-to-date results indicate that Western and Northern Europe recorded modest increases in both total revenue per available room and gross operating profit per available room compared to last year. While revenue growth has slowed, costs—particularly labor—continue to rise.
“What we’re seeing across Europe—and very clearly in Spain—is that revenue performance alone is no longer enough to define success,” Juan Gallardo, director for hospitality intelligence, EMEA at HotStats, said in a statement. “As markets stabilize, profitability is increasingly shaped by margin discipline, labor management and cost control further down the P&L. Small movements in these areas can have a significant impact on overall performance.”
The data, however, did indicate that Southern Europe remains a relative bright spot, with flow-through of approximately 50 percent, signaling that many markets have now reached the end of the post-pandemic recovery phase, according to the company. While year-to-date revenue remains resilient in Spain, profit growth has flattened, suggesting the market has already reached its peak performance and is now in an operationally driven phase.
Across Europe overall, both revenue and profit growth are running a roughly 2.5 percent increase year-to-date, with cost growth beginning to moderate. A strong summer travel season supported revenue growth, while strategic cost controls enabled solid GOP conversion. November year-to-date GOP margin stands at approximately 37 percent, broadly in line with last year. Southern Europe leads with margins of around 42 percent, driven primarily by leisure demand, while Western Europe trails at approximately 33 percent.