SAN FRANCISCO — January 21, 2026 — As European hotel markets move into a more complex phase of the cycle, Duetto and HotStats will be on-site at FITUR 2026 (taking place January 21–25 at IFEMA Madrid) to reframe the industry conversation — shifting focus from top-line growth alone to sustainable profitability across the entire hotel P&L.
Recent aggregated performance data from HotStats illustrates the European hotel market is no longer moving in a single direction. November year-to-date results show that Western and Northern European subregions recorded a small increase in TRevPAR and GOPPAR compared to the previous year. While revenue growth has slowed, costs — particularly labor — continue to rise.
Southern Europe remains a relative bright spot with flow-through of approximately 50%, signaling that many markets have now reached the end of recovery. Across Europe overall, revenue and profit growth stand at approximately +2.5% year-to-date, with cost growth slowing.
When performance is viewed through the GOP margin lens, the picture becomes even more telling.
A strong summer in Europe supported revenue growth, while strategic cost controls enabled good GOP conversion. The November year-to-date GOP margin is at 37%, broadly in line with last year. Southern Europe leads with GOP margins of approximately 42%, driven by leisure demand, while Western Europe trails at around 33%.
Spain highlights how this transition is playing out at the market level
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.
At the same time, the composition of revenue is evolving. Ancillary revenues in Spain continued to grow year-to-date, reinforcing the point that spend is increasingly shifting beyond the room — but that this growth does not automatically translate into higher profitability without margin discipline.
Cost pressures remain a defining factor. Payroll per available room increased almost 4% year-to-date in Spain, reflecting ongoing labor challenges and wage inflation that continue to weigh on margins even as revenue stabilizes.
Further down the P&L statement, undistributed department expenses also rose, underscoring that profit erosion is often driven by cost creep beyond core operating departments.
“What we’re seeing across Europe — and very clearly in Spain — is that revenue performance alone is no longer enough to explain success,” said Juan Gallardo, Director for Hospitality Intelligence, EMEA at HotStats. “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 big impact on overall performance.”
Duetto and HotStats offer complementary capabilities, allowing hotel operators to evaluate both profit and revenue outcomes. While Duetto’s core products optimize how revenue is generated, HotStats provides visibility into how that revenue converts into profit — supported by benchmarking that gives hotel performance essential market context.
Duetto and HotStats will be on-site throughout and invite attendees to connect at Booth 12G01 to discuss how hotels can move from siloed decision-making to a more integrated, profit-focused operating model.
In today’s environment, profitability is no longer a by-product of growth — it is a discipline. And it is this discipline that Duetto and HotStats are helping hotels build, together.
Methodology Note: The data cited is based on an anonymized, aggregated study of the HotStats European database. No individual property PII, trade secret or other confidential data was shared between users.
