European Hotels monthly tracker: STR RevPAR heterogeneous in May

Research evidence excerpt

European Hotels monthly tracker: STR RevPAR heterogeneous in May

Deutsche Bank

Research

Europe Industry Date

Spain 19 June 2026

Sweden European Hotels

United Kingdom Industry Update

monthly tracker

Leisure & Hotels

Hotels

STR RevPAR heterogeneous in May

Andre Juillard

Regional Performance continues to diverge Research Analyst

European hotel RevPAR in May 2026 showed a mixed picture. Italy led strong +33-1-4495-6585

growth at +12.2%, followed by Spain (6.3%), Regional France (5.7%), and Ireland

Tim Barrett

(5.7%). Conversely, Belgium, the Netherlands, and Germany experienced in mid-to- Research Analyst

high single digits declining RevPAR YoY due to mixed effect of declining rates and +44-20-7541-1559

occupancy. London and the wider UK market saw slightly more favorable RevPAR

Shubhi Bansal

in May compared to April. Globally, the US was positive with a +4.0% RevPAR

Research Associate

increase, while China slightly declined by -0.2%. Demand growth was strongest in

London (+8.5% MSE, +4.1% wider London) and weakest in Germany (-2.8%). This

highlights persistent regional performance differences.

Our investment recommendations for hotel sector companies account for these

diverse RevPAR trends, individual market positioning, growth prospects, and

valuation metrics. We have one 'Buy' and three 'Holds' in the sector.

Melia (Buy): Anticipated strong demand-supply dynamics in Spain, coupled with

high-single-digit RevPAR growth expectations for FY26 (potentially boosted by the

Middle East situation), and new shareholder support make Melia an attractive

"Buy."

Whitbread (Hold): WTB is set for a robust Summer in the UK and Q1 was slightly

stronger than expected at +1.8%. However Germany is lagging (-0.7%) and the F&B

market remains difficult.