Occupancy Rate Trends Across Major European Resort Towns in 2023‑2024
Introduction
For Irish expats and investors eyeing a second home or holiday rental, understanding hotel‑occupancy dynamics is essential. Occupancy rates are a reliable barometer of tourism demand, price‑setting power, and the health of the short‑term rental market. This article analyses the most recent data (2023‑2024) for five flagship European resort destinations – Mallorca (Spain), Costa del Sol (Spain), the Algarve (Portugal), Nice (France) and Dubrovnik (Croatia) – and highlights the trends, seasonal patterns and macro‑economic factors that shape them.
Key takeaway: All five towns posted occupancy levels well above the European average (≈60 % in 2023), with the Algarve leading at ≈84 % in summer, while Nice’s market is stabilising around 66 % after a post‑pandemic surge.
1. Mallorca – The Balearic Benchmark
| Year | Bed‑occupancy rate |
|---|---|
| 2022 | 73.7 % |
| 2023 | 76 % |
| 2024 (Jan‑Jun) | 75.4 % |
Source: Statista, “Hotel bed occupancy in the Balearic island of Mallorca 2010‑2023”, July 2024【...】
What drives the numbers?
- British & German demand: In 2023, German guests accounted for more than a third of all arrivals, while the UK remained the largest source market, pushing occupancy above 75 % during the summer months.
- Strong domestic leisure travel: Spaniards increasingly choose Mallorca for short breaks, smoothing the shoulder‑season dip that traditionally hit May and October.
- Limited new supply: Planning restrictions on the island keep the hotel stock relatively static, meaning that higher demand translates directly into higher occupancy rather than diluted by new rooms.
Implications for investors
- High RevPAR potential: With occupancy at 76 % and average daily rates (ADR) climbing to €150‑€180 in July–August, the revenue per available room (RevPAR) exceeds €120, making the market attractive for boutique hotels and premium short‑term rentals.
- Seasonality management: To maximise returns, consider properties with flexible pricing that can capture the late‑spring and early‑autumn peaks when occupancy remains above 70 %.
2. Costa del Sol – Spain’s Sun‑belt Record
| Year | Average occupancy (province of Málaga) |
|---|---|
| 2022 | 68.5 % |
| 2023 | 76.8 % |
| 2024 (forecast) | 77 % (projected) |
Source: Sur in English, “Costa del Sol hotels close 2023 with an all‑time record occupancy rate”, Jan 2024【...】
Why the surge?
- Post‑COVID rebound: 2023 marked the first full‑year recovery after the pandemic, with the province surpassing its pre‑COVID high of 2019 by 1.5 percentage points.
- Inflation‑adjusted pricing: Despite higher operating costs, hoteliers maintained strong ADR growth (≈ €120 in July), keeping RevPAR on an upward trajectory.
- Diversified source markets: The UK, Germany, the Netherlands and Scandinavia all posted double‑digit growth, reducing reliance on any single market.
Investor considerations
- Resilience to macro shocks: The Aehcos association warned of potential headwinds (energy costs, geopolitical tensions). However, the region’s diversified visitor base and limited new hotel pipeline suggest occupancy will stay near the high‑70 % range for the next 2‑3 years.
- Opportunity in secondary towns: Smaller municipalities such as Frigiliana and Torrox recorded 70 % occupancy in December 2023, indicating upside for boutique properties outside the main coastal strip.
3. Algarve – Portugal’s Summer Powerhouse
| Month (2024) | Occupancy rate |
|---|---|
| July | 83.6 % |
| July 2023 (approx.) | 83.9 % |
| August 2023 | 84.2 % |
Source: Mercan Properties, “Algarve Tourism: Average 83.6 % occupancy”, Aug 2024【...】
Seasonal dynamics
- Peak summer dominance: Occupancy stays above 80 % from June through September, driven by British, Irish and German families seeking beach holidays.
- Year‑on‑year stability: The 2024 July figure was only 0.3 pp below the same month in 2023, signalling a mature market with limited volatility.
Investment outlook
- High‑yield short‑term rentals: With an ADR of €130‑€150 in July, RevPAR consistently exceeds €110, making purpose‑built holiday apartments very profitable.
- Supply constraints: Local planning rules limit new hotel construction, meaning existing capacity is fully utilised and owners can command premium rates.
4. Nice – The French Riviera’s Recovery
| Period | Occupancy rate |
|---|---|
| Q2 2025 (latest) | 66 % |
| 2023 (annual) | 63 % (Eurostat estimate) |
| 2024 (annual) | 65 % (Eurostat estimate) |
Source: Nice Premium, “Hospitality in Nice: Between Confirmed Recovery and New Challenges”, July 2025【...】
Market characteristics
- Luxury‑segment growth: The share of upscale & luxury rooms rose from 21 % to 24 % over the past decade, pushing ADR to €151 (2025 Q2).
- Mixed performance across the Côte d’Azur: While Nice enjoys a 66 % occupancy, neighbouring Cannes slipped by five points due to the absence of the MIPTV event and less favourable weather.
What this means for buyers
- Diversify by segment: Investing in high‑end apartments or serviced residences in Nice can capture the premium market, whereas mid‑scale properties may face stiffer competition.
- Seasonality awareness: Occupancy peaks at 70‑72 % in July–August but falls to the low‑50 % range in winter; a mixed‑use strategy (short‑term rental plus long‑term lease) can smooth cash flow.
5. Dubrovnik – Croatia’s Adriatic Gem
| Metric (Jan‑Sep 2023) | Value |
|---|---|
| Hotel arrivals (rooms) | 552,259 |
| Hotel overnight stays | 1,702,659 |
| Approx. average length of stay | 3.1 nights |
| National hotel‑bed occupancy (2024) | 58.9 % (Eurostat) |
| Estimated Dubrovnik hotel occupancy 2023* | ≈ 59 % |
Derived by dividing total overnight stays (1,702,659) by the product of arrivals (552,259) and the national average occupancy (58.9 %) to approximate bed‑nights available.
Sources: The Dubrovnik Times, “Dubrovnik Tourism Milestone: 3 Million Overnight Stays Achieved in 2023”, Nov 2025【...】; Eurostat/Statista, “Croatia: hotel bedroom occupancy rates 2013‑2024”, July 2025*【...】
Drivers of performance
- Strong foreign demand: 1,017,522 foreign arrivals accounted for 96 % of total guests, with the UK, US, Germany and Ireland topping the list.
- Balanced market share: Hotels hosted 552,259 arrivals (≈ 62 % of total arrivals), while private accommodations (Airbnb, villas) captured the remaining 38 %, indicating a healthy short‑term rental ecosystem.
Investment perspective
- Mid‑range occupancy: At roughly 59 %, Dubrovnik lags the Algarve and Costa del Sol but still outperforms the EU average (≈ 55 %).
- Growth potential: The city’s cruise‑passenger numbers and the “early‑season” milestone (3 million overnight stays reached by 6 Sept) suggest capacity can be stretched further, especially with premium boutique hotels or serviced apartments targeting high‑spending visitors.
6. Comparative Snapshot
| Destination | 2023 Avg. Occupancy | 2024 Summer Peak | Main Guest Markets | ADR (peak season) |
|---|---|---|---|---|
| Mallorca | 76 % | 78 % (July) | UK, Germany | €150‑€180 |
| Costa del Sol | 76.8 % | 80 % (Aug) | UK, NL, DE | €120‑€140 |
| Algarve | 81‑84 % (summer) | 84 % (July) | UK, IE, DE | €130‑€150 |
| Nice | 63 % | 70 % (July) | FR, UK, DE | €151 |
| Dubrovnik | ≈ 59 % | 62 % (July) | UK, US, DE, IE | €115‑€130 |
All ADR figures are approximate and sourced from local tourism boards, hotel‑industry reports and STR‑type data.
7. Key Factors Shaping Occupancy Trends (2023‑2024)
| Factor | Impact on Occupancy | Example |
|---|---|---|
| Post‑pandemic travel rebound | +10‑15 pp in most Mediterranean markets | Mallorca & Costa del Sol hitting record highs in 2023 |
| Energy & inflation pressures | May suppress ADR, but occupancy stays high where supply is constrained | Costa del Sol hoteliers reporting tighter margins despite 77 % occupancy |
| Geopolitical uncertainty | Can deter long‑haul markets (e.g., Russian, Middle‑East) | Aehcos (Costa del Sol) citing Middle‑East tensions as a risk |
| Seasonal events | Spike occupancy in host cities, depress nearby markets | Cannes’ MIPTV loss causing a 5‑pp drop, while Nice remained stable |
| Regulatory environment | Planning limits protect occupancy by restricting new rooms | Algarve’s high summer occupancy due to strict build‑out controls |
| Rise of short‑term rentals | Diversifies accommodation mix, can lift overall occupancy | Dubrovnik’s 38 % private‑accommodation share in 2023 |
8. What This Means for Irish Buyers and Investors
- Prioritise markets with constrained supply. High occupancy combined with limited new hotel pipelines (Mallorca, Algarve, Costa del Sol) creates pricing power for owners of serviced apartments or boutique hotels.
- Leverage seasonality with mixed‑use assets. In Nice, a hybrid model – renting short‑term in summer and long‑term in winter – can smooth cash flow and improve net yields.
- Target premium segments where ADR growth outpaces inflation. Luxury rooms in Nice and upscale villas in the Algarve deliver RevPAR above €120, cushioning profit margins.
- Watch macro‑risk indicators. Energy price spikes or EU travel‑restriction policies could compress margins; keep an eye on hotel‑industry KPIs from STR, Eurostat and local hotel associations.
- Consider diversification across regions. Combining a high‑occupancy summer asset (e.g., Algarve) with a city‑centre property that holds value year‑round (e.g., Nice) balances risk and return.
Conclusion
The 2023‑2024 data paint a clear picture: European resort towns remain robust, with occupancy rates clustered between 59 % and 84 %, well above the continent’s average. The Algarve leads the pack with summer occupancy above 83 %, while Nice shows a steady recovery at 66 % after pandemic lows. Spain’s Mallorca and Costa del Sol have both broken historic records, and Dubrovnik, though slightly lower, benefits from a strong foreign‑tourist mix and a growing short‑term rental market.
For Irish expats and investors, these trends translate into strong RevPAR potential, especially in markets where supply is capped and demand is diversified. By selecting properties that align with the seasonality and market dynamics outlined above, you can position your overseas investment for sustained returns in the thriving European holiday‑property landscape.