European hotel outlook for 2025: optimism meets caution

This week’s update dives into fresh data from Statista and Booking.com, revealing how hoteliers across Europe are feeling about the rest of 2025. While many report signs of recovery, challenges like staffing shortages, rising costs, and slow tech adoption remain front and center.

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We also spotlight Wyndham’s new alliance with Ovolo to capture the experiential travel market, Landingplace Hotels’ tech-driven midscale launch, Dusit’s entry into France, and a major U.S. policy shift aimed at boosting hotel innovation.

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Read on for the full breakdown.

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European hotel outlook for 2025: New statistics from Statistica

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Fresh reports from Statista, in collaboration with Booking.com, reveal nuanced insights into Europe’s hotel sector heading into 2025. Let’s start with the good news. Over half of UK-based hoteliers report positive economic developments in recent months. That’s a welcome shift after a few rocky years, and it signals that travel demand and guest confidence are slowly stabilizing. There's a general feeling that the worst may be behind us, at least in terms of revenue recovery.

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But scratch the surface and you’ll find plenty of challenges lurking beneath the optimism.

Hiring headaches and salary pressure

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Staffing continues to be a sore spot. Recruitment appetite is low, and where hotels are hiring, salary expectations are climbing. That puts added pressure on profit margins—especially for independent hotels that don’t have the same scale advantages as large chains. Many operators are finding it tough to maintain service standards while also controlling labor costs.

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The growing digital divide

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Another key takeaway? Technology adoption is splitting the market.

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Larger hotel groups are increasingly embracing AI and automation, not just for guest experience but also for backend operations, pricing, and marketing. But smaller players are falling behind, often citing cost, complexity, or simply not knowing where to begin. That creates a growing digital divide—where some hotels innovate and optimize, while others struggle to keep up with the pace of change.

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Policy pressures on the horizon

The report also flags potential tourism levies in several European countries. While the details are still under discussion, the very idea of new taxes is making independent operators nervous. When margins are already thin, any added costs—especially unpredictable ones—can push hotels to cut back on investment, staff, or guest amenities.

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Local insights, global impact

What makes this research especially valuable is its country-specific breakdown. Whether you’re managing properties in Spain, Germany, France, or the UK, the report offers tailored insights into local sentiment and challenges. And with the findings available in multiple languages, it’s a great tool for multinational operators or investors planning their 2025 strategies.

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In short: there’s cautious optimism, but also a clear message—those who invest in tech, talent, and adaptability will be best positioned to thrive in the year ahead.

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Wyndham and Ovolo join forces to tap into experiential travel

Wyndham Hotels & Resorts and the Ovolo Group have entered a strategic alliance that will see five Ovolo hotels in Australia and Hong Kong join the Wyndham brand portfolio. This partnership merges Ovolo’s boutique charm and design-driven hospitality with Wyndham’s vast global distribution and loyalty infrastructure.

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The collaboration reflects a shared vision to capitalize on the $1 trillion global experiential travel opportunity, as identified by McKinsey. Over 450 rooms across Sydney, Brisbane, Canberra, Melbourne, and Hong Kong will be integrated into Wyndham’s network. As part of this transition, the hotels will benefit from Wyndham’s robust sales and marketing support and become part of the Wyndham Rewards program.

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This move is a key milestone in Wyndham’s broader Asia-Pacific growth strategy. By aligning with a distinctive lifestyle brand like Ovolo, Wyndham is enhancing its ability to attract a younger, experience-seeking demographic while reinforcing its dominance in key urban markets.

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Landingplace redefines midscale with flexibility and tech

Landingplace Hotels has introduced two new midscale brands—Landingplace Suites and Landingplace Select—designed to address some of the most pressing challenges faced by hotel operators today, including soaring operational costs and persistent staffing shortages.

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Landingplace Suites focuses on extended-stay guests, offering flexible accommodations for 30+ nights. The brand delivers the comforts of apartment living with the services of a hotel, paired with lifestyle amenities such as food trucks, community events, and live music—an appeal to modern, mobile travelers.

Landingplace Select, on the other hand, is built for shorter stays and high-turnover urban settings. The brand embraces smart technology and on-demand services to streamline operations and minimize staffing needs, ensuring profitability through efficiency.

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With a looming wave of hotel loan maturities expected in 2025 across the U.S., Landingplace provides hotel owners with cost-effective conversion options. These concepts are well-positioned to meet shifting guest expectations while alleviating operational burdens, making them a timely addition to a crowded but evolving midscale landscape.

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Dusit expands into France with SYDEL joint venture

Dusit International, the Bangkok-based hospitality company known for its Thai-inspired service philosophy, has announced a strategic joint venture with French real estate investment firm SYDEL. The new partnership will launch Dusit France, marking Dusit’s first formal entry into the French market.

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The move will bring Dusit brands—including Dusit Thani and Dusit Suites—to one of the world’s most visited countries, with a focus on premium locations and culturally immersive hotel experiences. SYDEL’s deep market knowledge and development expertise will support the identification and rollout of these properties.

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This expansion aligns with Dusit’s global strategy to scale thoughtfully while preserving cultural authenticity and delivering long-term value. It complements Dusit’s growing international presence, which already includes nearly 300 properties across 18 countries—among them the high-end Dusit Suites Athens in Greece.

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New U.S. legislation boosts hotel innovation and investment

The U.S. hospitality sector has received a significant tailwind with the passage of the One Big, Beautiful Bill (OBBB). The law introduces permanent tax incentives designed to encourage capital investment and tech adoption across the hotel industry.

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OBBB restores 100% bonus depreciation for qualifying property, enabling hoteliers to write off the full cost of eligible upgrades immediately. It also enhances incentives for digital infrastructure, automation, and R&D—accelerating innovation at a time when efficiency and adaptability are more important than ever.

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This legislative change has been applauded by industry associations, which view it as a long-term growth lever. By framing technology as a core asset, OBBB aims to help hotels modernize, improve decision-making through data, and compete more effectively in a rapidly shifting travel landscape.

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Otamiser is the world leader in OTA optimization, Otamiser helps hotels across Europe, the U.S., and Asia improve OTA rankings and revenue through data-driven pricing and local market insights.