- Greece ranked first in Europe for hotel revenue per available room (RevPAR) in July 2025.
- RevPAR reached €216.8, a 15.4% year-on-year increase.
- Switzerland trailed at €160, with Spain, Portugal, and Italy below €132.
- Gains came from higher daily rates (+20.7%), not occupancy (–3.7 points).
- Europe overall saw RevPAR drop –2.3%, with Germany and France recording steep declines.
A July to Remember
For Greek hoteliers, July 2025 was not simply another strong summer month — it was the month that crowned them champions of Europe. Figures released by MKG Consulting confirmed what many in the industry already suspected: Greece is now at the very top of Europe’s hotel economy, at least when measured by revenue per available room.
The numbers are striking. Average RevPAR in Greek hotels climbed to €216.8 in July, a performance unmatched by any other European country. Switzerland came closest at €160, while Mediterranean rivals Spain (€131.5), Portugal (€129.5), and Italy (€128.9) were left trailing. For the second year in a row, Greece has taken the top spot, improving on July 2024’s €187.8 and setting a new benchmark for summer performance.
What Pushed Greece Ahead
Behind the headline figures lies a simple truth: Greek hotels did not fill more rooms; they charged more for them. Average daily rates jumped by an impressive 20.7% compared to last July. Occupancy actually slipped by 3.7 percentage points, but higher prices more than offset the decline.
This pricing strategy appears to have paid off. Greece posted the highest increase in RevPAR across Europe, up 15.4%. According to MKG, only Greece and Spain managed to apply rate policies that significantly boosted revenues, while most other countries struggled to hold their ground.
The effect is that Greece has turned its seasonal magnetism into hard cash. Guests may grumble about higher prices, but they keep coming — and paying.
A Continent in Slowdown
The contrast with the broader European market could hardly be sharper. Across Europe, RevPAR fell by 2.3% in July compared with the same month in 2024. The main culprit was falling average daily rates, which slipped 4% across the sample. Budget hotels were hit hardest, with ADR down 5.4%, as price-sensitive travelers pulled back.
- Spain bucked the trend, inching RevPAR up 3.3% thanks to steady occupancy (+0.5 points) and modestly higher rates (+2.7%). Its coastal resorts continue to attract loyal clientele, though industry sentiment suggests growth is slowing.
- Portugal stayed nearly flat, with occupancy barely moving (+0.8) but ADR falling 2%, leading to a 1% decline in RevPAR.
- Italy fared worse. Hotels there reported both falling occupancy (–1.1 points) and lower rates (–4.4%), combining for a 5.4% decline in RevPAR.
- Germany saw the sharpest fall: –9.1%. The comparison is skewed by last year’s Euro 2024 football championship, which inflated demand until the final on July 14. But even without the tournament, Germany’s weak domestic economy is weighing on hotel demand.
- France slipped 5%. Hotels filled more rooms (+2.3 points in occupancy) but only by slashing rates (–8%). Hoteliers chose to cut prices to stay competitive, sacrificing revenue for stability.
The picture is clear: while Europe cools, Greece is burning brightly.
Lessons From the Leaders
The Greek hotel sector has managed to carve out a position of strength by leaning on its strongest asset: the country’s brand as a summer paradise. The international market seems willing to pay more for a room in Athens, Santorini, Mykonos, or Crete than in many competing destinations. Even secondary locations are benefiting from the halo effect, with high demand spilling over beyond the famous islands.
This does not mean there are no risks. A decline in occupancy could become more serious if price increases continue unchecked. Yet for now, the balance is working in Greece’s favor. Industry insiders suggest the focus on quality upgrades, boutique hotels, and luxury resorts is attracting higher-spending guests who are less sensitive to rising rates.
A Fragile European Market
The broader slowdown raises questions about where Europe’s hotel economy is heading. With inflation still high and household budgets under pressure, price sensitivity is likely to grow. That leaves many markets vulnerable, particularly those that depend heavily on domestic or regional tourists.
In contrast, Greece benefits from its global appeal. Visitors arrive not just from Europe but also from the U.S., the Middle East, and Asia, providing a more diversified base. In July, the appeal of Greek destinations once again outweighed the pain of higher prices.
A Golden Season, But for How Long?
The success of July 2025 reinforces the idea that Greece is no longer a challenger but the champion of Europe’s summer hotel scene. For hoteliers, this is both a triumph and a challenge: maintaining momentum without overpricing themselves out of the market will be delicate.
Still, for now, the story is one of pride. Greek hotels not only led the continent, they widened the gap. When Switzerland, Spain, and Italy are left struggling to match revenues, it is clear that Greece has managed to strike the right summer chord.
And with the season far from over, there is every reason to think the crown will stay on Greek heads a little longer.
