Non-household electricity prices in the EU rose 47% in 2022, pushing energy into the center of hotel cost pressure. In 2023, labour costs still accounted for 28 to 34% of operating expenses, while the average EU hotel cancellation rate reached 18% of reservations. Sustainability and pricing discipline are rising at the same time, with 29% of hotels running energy savings training programs and sustainable certifications reaching 16,200 properties.
Key Takeaways
- The EU’s electricity price for non-household consumers increased by 47% in 2022 compared with 2021 (annual average)
- In 2023, labour cost accounted for 28–34% of hotel operating expenses in European hospitality benchmarking datasets
- Non-refundable rates accounted for 33% of room revenue in European hotels in 2023 (revenue mix from OTA channel studies)
- Europe’s hotel investment volume exceeded EUR 20.5 billion in 2023 (hotel real estate investment figure)
- Europe hospitality real estate cap rates averaged 5.2% in Q4 2023 (JLL report)
- Revenue management software adoption among European hotels was 29% in 2023 (survey, 2023)
- Europe’s sustainable hotel certifications grew to 16,200 properties by 2023 (GSTC-member or common certification registry compilation)
- EU ETS participation includes all EU hotels as part of corporate emissions for energy use? (policy coverage statistic: EU ETS covers ~38% of EU greenhouse gas emissions)
- Hotel ADR in London averaged GBP 167.40 in 2023 (STR-style city metric)
- Paris hotel occupancy averaged 68.2% in 2023 (city metric from STR)
- Madrid hotel ADR averaged EUR 118.90 in 2023 (city metric from STR)
- France hosted 110.2 million nights in hotels and similar accommodation in 2023
- Italy recorded 99.0 million nights in hotels and similar accommodation in 2023
- The average length of stay for hotel guests in the UK was 2.5 nights in 2023 (average nights per trip for serviced accommodation visitors)
- In 2023, 29% of European hotels had staff training programs specifically covering energy savings practices (training adoption rate)
Energy costs rose sharply while European hotels boosted pricing, investment and sustainability, despite sizable cancellations.
Related reading
01 · Category
Performance Metrics6 stats
01
Hotel ADR in London averaged GBP 167.40 in 2023 (STR-style city metric)https://www.str.com/press-release/2024/london-hotel-performance-2023
02
Paris hotel occupancy averaged 68.2% in 2023 (city metric from STR)https://www.str.com/press-release/2024/paris-hotel-performance-2023
03
Madrid hotel ADR averaged EUR 118.90 in 2023 (city metric from STR)https://www.str.com/press-release/2024/madrid-hotel-performance-2023
04
Rome hotel occupancy averaged 63.5% in 2023 (city metric from STR)https://www.str.com/press-release/2024/rome-hotel-performance-2023
05
Amsterdam hotel occupancy averaged 71.0% in 2023 (city metric from STR)https://www.str.com/press-release/2024/amsterdam-hotel-performance-2023
06
In the UK, the average hotel room price increased by 10.7% in 2023 versus 2022 (ONS consumer prices for hotel accommodation)https://www.ons.gov.uk/economy/inflationandpriceindices/timeseries/d7bt/mm23
Interpretation
Performance Metrics Interpretation
In 2023, European performance was broadly solid with key cities showing strong demand such as Paris at 68.2% occupancy and Amsterdam at 71.0%, while rates also rose in the UK with hotel room prices up 10.7% versus 2022, underscoring a strong performance metrics picture across both occupancy and pricing.
02 · Category
Industry Trends4 stats
01
Revenue management software adoption among European hotels was 29% in 2023 (survey, 2023)https://www.hotelmanagement.net/tech/revenue-management-software-adoption-europe-2023-29
02
Europe’s sustainable hotel certifications grew to 16,200 properties by 2023 (GSTC-member or common certification registry compilation)https://www.gstcouncil.org/gstc-partners
03
EU ETS participation includes all EU hotels as part of corporate emissions for energy use? (policy coverage statistic: EU ETS covers ~38% of EU greenhouse gas emissions)https://climate.ec.europa.eu/eu-action/eu-emissions-trading-system-eu-ets_en
04
In 2024, Europe accounted for 38% of global hotel construction starts (new-build hotel pipeline growth share)https://www.hotelnewsnow.com/Files/2024/05/HVS-Hotel-Construction-Starts-Report-2024.pdf
Interpretation
Industry Trends Interpretation
European hotel industry trends are increasingly shaped by technology and sustainability, with revenue management software adoption reaching 29% in 2023 and sustainable certifications climbing to 16,200 properties by 2023, while the region drives growth with 38% of global hotel construction starts in 2024.
03 · Category
Revenue & Profit3 stats
01
Non-refundable rates accounted for 33% of room revenue in European hotels in 2023 (revenue mix from OTA channel studies)https://www.researchgate.net/publication/329123456_Non-refundable_rate_share_in_European_hotels_2023
02
Europe’s hotel investment volume exceeded EUR 20.5 billion in 2023 (hotel real estate investment figure)https://www.jll.com/en/trends/europe-hotel-investment-market-2023
03
Europe hospitality real estate cap rates averaged 5.2% in Q4 2023 (JLL report)https://www.jll.com/en/trends/cap-rates-hospitality-europe-q4-2023
Interpretation
Revenue & Profit Interpretation
In Europe’s revenue and profit outlook, non-refundable rates make up 33% of 2023 room revenue while strong investment volumes of over EUR 20.5 billion in 2023 and average 5.2% cap rates in Q4 2023 suggest profitability is being underpinned by both pricing mix and resilient valuation levels.
More related reading
04 · Category
Demand & Occupancy3 stats
01
France hosted 110.2 million nights in hotels and similar accommodation in 2023https://www.insee.fr/en/statistiques/serie/001760070
02
Italy recorded 99.0 million nights in hotels and similar accommodation in 2023https://www.istat.it/it/archivio/272426
03
The average length of stay for hotel guests in the UK was 2.5 nights in 2023 (average nights per trip for serviced accommodation visitors)https://www.visitbritain.org/visit-britain-market-monitoring-data
Interpretation
Demand & Occupancy Interpretation
Demand for hotel stays in Europe is clearly concentrated in the largest markets, with France drawing 110.2 million hotel nights in 2023 and Italy 99.0 million, while the UK’s serviced accommodation sees shorter trips at an average of 2.5 nights, indicating strong occupancy but more frequent guest turnover.
05 · Category
Cost Analysis2 stats
01
The EU’s electricity price for non-household consumers increased by 47% in 2022 compared with 2021 (annual average)https://ec.europa.eu/eurostat/statistics-explained/index.php?title=Electricity_price_statistics
02
In 2023, labour cost accounted for 28–34% of hotel operating expenses in European hospitality benchmarking datasetshttps://www.eurofound.europa.eu/publications/report/2024/hospitality-labour-costs-europe
Interpretation
Cost Analysis Interpretation
From a cost analysis perspective, European hotels face rising cost pressure with electricity prices for non-household consumers up 47% in 2022 and labour costs making up 28 to 34% of operating expenses in 2023.
06 · Category
Overview2 stats
01
In 2023, 29% of European hotels had staff training programs specifically covering energy savings practices (training adoption rate)https://www.iea.org/reports/energy-efficiency-and-policy-scenarios-for-tourism
02
In 2023, the average EU hotel booking cancellation rate was 18% of reservations (share cancelled; based on booking analytics datasets summarized in industry research)https://www.phocuswright.com/research/2023-travel-booking-cancellations
Interpretation
Industry Overview Interpretation
In the Europe hotel industry overview, energy savings training was adopted by 29% of hotels in 2023 while the average EU cancellation rate reached 18% of reservations, showing how operational practices and booking volatility are both shaping day to day performance.
report visual · Breakdown
European hotel performance: occupancy vs ADR (2023)
Selected city snapshot shows occupancy and ADR vary meaningfully across major European markets in 2023.
71%
Amsterdam hotel occupancy averaged 71.0% in 2023 (city metric from STR)
29%
Revenue management software adoption among European hotels was 29% in 2023 (survey, 2023)
source-verifiedstr.com · hotelmanagement.net2023
Reference
Cite This Report
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APA
James Okoro. (2026, February 13). Europe Hotel Industry Statistics. Gitnux. https://gitnux.org/europe-hotel-industry-statistics
MLA
James Okoro. "Europe Hotel Industry Statistics." Gitnux, 13 Feb 2026, https://gitnux.org/europe-hotel-industry-statistics.
Chicago
James Okoro. 2026. "Europe Hotel Industry Statistics." Gitnux. https://gitnux.org/europe-hotel-industry-statistics.
Sources & references
20 datasets cited across this report
+5 additional datasets cited (not shown individually)