More than 10,000 hotels across Europe have joined a class action against Booking.com, and organizers have extended the deadline to join the lawsuit to Aug. 29. 

The lawsuit’s participation deadline was initially set for July 31.

The complaint is being organized by HOTREC, a Brussels-based hospitality association that represents hotels, restaurants and cafes across 36 European countries, and 30-plus national hotel associations.

The class action stems from a September 2024 European Court of Justice ruling on a case between Booking.com and more than 60 German hotels and hospitality groups.

HOTREC says that the court found that Booking.com’s parity clauses violated EU competition law, preventing hotels from offering lower prices or better availability via their own websites or other OTAs. 

“Hotels across Europe are entitled to claim compensation from Booking.com for the financial losses suffered,” said HOTREC in a statement, adding that “affected hotels may be eligible to recover a significant portion of commissions paid to Booking.com” between 2004 to 2024, plus interest.  

“Now is the time to stand together and seek redress,” said HOTREC president Alexandros Vassilikos. “This collective action sends a strong message: abusive practices in the digital marketplace will not go unchallenged.”

Booking Holdings, the parent company of Booking.com, disputes the claims, with a spokesperson for the company calling statements made by HOTREC and other hotel associations “incorrect and misleading.” 

“The ECJ ruling that HOTREC and other hotel associations have been referencing to validate a potential class action did not conclude that Booking.com’s price parity clauses were anticompetitive,” said the Booking Holdings spokesperson. “The ECJ was not even asked to assess whether our clauses had anticompetitive effects or any impact on competition. The court simply stated that such clauses fall within the scope of EU competition law and that their effects must be assessed on a case-by-case basis.”

The spokesperson added that the company has “not received any formal notification of a class action.”

HOTREC said the case is being coordinated through the Dutch-based Hotel Claims Alliance Foundation and will be heard in Netherlands courts.

INTERNATIONAL REPORT — Born out of Palma de
Mallorca, Spain, a decade ago, the Fergus Group’s 34 hotel assets stretch
across key Spanish holiday regions, including the Balearic and Canary Islands,
Catalonia, and Andalusia.

The Spanish company owned by Mallorcan
entrepreneur Pep Cañellas specializes in repositioning, managing, and
commercializing hotel assets across various brands from luxury to mid-market.
It owns and operates hotels under the Fergus Hotels and tent Hotels, while its
soft brand is Affiliated by Fergus.

Already, in 2025, the group has added seven
new properties to its portfolio, with three in Mallorca and one in Sitges on
the Barcelona coast. About a dozen more hotel transformation projects are in
the pipeline for 2025 and 2026, said CEO Bernat Vicens, particularly in the
Canary Islands and in new opportunities areas such as the Valencian Community,
with a special interest in Benidorm.

“Our growth strategy is strongly rooted in the
repositioning of underperforming assets in Spain’s mature vacation
destinations,” Vicens said. “That said, our priority when assessing new
opportunities is clear: we only move forward with projects that allow us to
create long-term value—for the hotel and the destination. We are selective in
our growth.”

The group’s local knowledge gives it the edge
on U.S. companies looking to expand in Spain in the holiday resort market, Vicens
added.

“Managing beach-oriented leisure hotels,
particularly in a mature destination like Spain, requires a very specific
expertise,” he said. “While the core principles of hotel management remain
common, vacation hotel management differs from urban or business hotels. Guest
behavior, expectations, seasonality and spending patterns demand a tailored
approach.

“Many large U.S.-based or publicly traded
companies rely on strong brand architecture but often lack the operational
experience and commercial strategies needed to succeed in this niche. Our
strength lies there.”

Vicens added that the Fergus Group model is
flexible and adapts to the ownership structure of each asset, noting that some
of the hotels are owned.

“We collaborate with a diverse range of
owners, from small family-run businesses to international investment funds and
other hospitality groups, who all share the objective of maximizing asset value,”
Vicens said.

The lineup

The Fergus Hotels brand includes 4- and 5-star
properties across Spain’s top coastal destinations. The brand operates three
distinct sub-segments: Fergus Club, aimed at all-inclusive, activity-rich,
family-oriented travel; the lifestyle-oriented Fergus Hotels; and the premium,
adult-oriented Fergus Style.

In 2020, the company launched tent Hotels,
targeting the mid-range to premium market segment, and Gen Y and Z travelers,
with a modern and flexible approach.

“Tent Hotels is a trailblazer in the B&UB
(Bed & Unlimited Brunch) category,” Vicens said. “These properties are
tailored for travelers seeking flexibility and immersion in the local
destination.”

Affiliated by Fergus targets independent
hotels that wish to retain their identity while benefiting from Fergus Group’s
operational and commercial expertise.

Vicens said that as a third-party management
company, its strategy is to add value to both the holding company and its
partners. “We choose hotels that are not at the level of performance that they
could be and, through a change in management and reinvestment, take them to
another category.

“Our GOP delivery strategy is rooted in a
combined formula of efficiency and a consumer value-driven model. We focus on
unlocking underutilized potential in assets through targeted repositioning,
lean operational structures and a tailor-made, asset-by-asset commercial
strategy.”

This, too, Vicens believes, differentiates the
group from larger U.S.-based operators who may standardize performance.

“We adapt our approach to each
property—maximizing owner returns by blending operational flexibility with a
deep understanding of local requirements, seasonality, and labor dynamics.”

Bottom line

Vicens said the company’s success can be
measured by the international companies that have chosen them as a management
partner, such as Grupo Piñero and Grupo de Empresas Matutes (owner of the
Palladium Hotel Group).

To date, the group has invested over €130
million in hotel repositioning projects, “always with a focus on unlocking
long-term value.”

Vicens said the group’s profits are soaring
along with its expanding portfolio and staff.

“We expect to close 2025 with a turnover of
€210 million and a GOP of €90 million, an 88% growth compared to recent years,”
he said.

This year, Fergus is opening seven new hotels,
including the Fergus Style Punta Arabí in Ibiza, its entry into Menorca with
two hotels, two new assets in Catalonia, and the ninth opening for its tent
Hotels brand. In 2026, three more hotels in Cala Major, Palma’s coastline, will
be renovated before reopening under the Fergus, Fergus Style, and tent Hotels
brands in 2027.

Vicens said the Spanish market continues to
demonstrate strong fundamentals in both domestic and international travel.

“We expect continued growth in ADR and RevPAR
in the leisure segment, especially in coastal and island destinations,” he said.
“With increased interest in quality, authenticity, and year-round experiences,
repositioned assets are in a strong position to outperform the market.”

Even with the uncertainty of global
macroeconomic factors, Vicens feels the outlook is positive, particularly for
operators who can adapt quickly and deliver tailored guest experiences.

“Each year, we add value to the sector by
introducing new repositioning projects that actively contribute to the
evolution of tourism in Spain,” he said.

Vicens gives the example of the €20 million
investments last year in launching three hotels in the Calvià area in
southwestern Mallorca: Fergus Club Mallorca Waterpark, tent Calvià Beach, and
tent Mojito Suites.

Closer
to home, overlooking the Bay of Palma, the group is expanding its footprint
with three new properties set to open in the seaside resort of Cala Major in
2027. Following an extensive repositioning project, the Fergus Style La Cala,
Fergus Marivent, and tent Costa Palma will re-emerge with upgraded facilities
and services.

The company’s global pipeline exceeded 93,000 rooms, including nearly 77,000 in the U.S. Its global system size grew 2.1 percent, including 3 percent growth in the upscale, extended-stay and midscale segments, Choice said in a statement.

“Choice Hotels delivered another quarter of record financial performance despite a softer domestic RevPAR environment, underscoring the successful execution and diversification of our growth strategy,” said Patrick Pacious, president and CEO. “We are especially pleased with our strong international performance, where we have achieved significant growth and accelerated global expansion through a recent strategic acquisition, the signing of key partnerships, and entry into new markets. With more diversified growth avenues, enhanced product quality and value proposition driving stronger customer engagement and a leading position in the cycle-resilient extended-stay segment, we remain well-positioned to deliver long-term returns for all our stakeholders.”

Domestic RevPAR declined 2.9 percent, reflecting macroeconomic conditions and a difficult comparison with 2024 due to the timing of Easter and eclipse-related travel, the statement said. Excluding those effects, RevPAR fell approximately 1.6 percent. Meanwhile, the domestic extended-stay portfolio outperformed the broader lodging industry by 40 basis points in RevPAR, while the economy transient portfolio exceeded its chain scale by 320 basis points.

Adjusted EBITDA rose 2 percent to $165 million, or $167 million excluding a $2 million operating guarantee related to the Radisson Hotels Americas acquisition. Adjusted diluted EPS increased 4 percent to $1.92, the statement said.

Expansion and development

The domestic extended-stay portfolio grew 10.5 percent year over year, with a pipeline of nearly 43,000 rooms as of June 30, Choice said. The combined domestic upscale, extended-stay and midscale portfolio grew 2.3 percent. WoodSpring Suites expanded 9.7 percent to nearly 33,000 rooms and ranked first in guest satisfaction among economy extended-stay brands in the J.D. Power 2025 study. The domestic economy transient pipeline increased 8 percent to more than 1,700 rooms.

Choice acquired the remaining 50 percent interest in Choice Hotels Canada for approximately $112 million in July, funded through cash and credit. The deal expanded its Canadian brand portfolio from eight to 22 and added 327 properties and more than 26,000 rooms. The business is expected to contribute approximately $18 million in EBITDA in 2025.

International activity included a renewed master franchise agreement with Atlantica Hospitality International in Brazil for more than 10,000 rooms; a direct franchise deal with Zenitude Hotel-Residences in France, which nearly tripled room count and two agreements with SSAW Hotels & Resorts in China. These include a 9,500-room distribution deal for 2025 and a master franchise agreement projected to add 10,000 rooms over five years.

Global net rooms for upscale brands increased 14.7 percent year over year, the statement said. The pipeline for these brands rose 7 percent since March 31 to nearly 29,000 rooms.

2025 outlook

Choice revised its RevPAR outlook to reflect more moderate domestic expectations due to macroeconomic conditions, the statement said. The adjusted EBITDA forecast includes a $6 million contribution from the Choice Hotels Canada acquisition for the remainder of 2025. It also reflects the $2 million Radisson-related operating guarantee payment incurred in the second quarter.

Net income guidance was lowered to a range of $261 million to $276 million, down from $275 million to $290 million. Adjusted net income remains at $324 million to $339 million.

Domestic RevPAR growth was revised to between negative 3 percent and flat, compared to the earlier range of negative 1 percent to positive 1 percent. The global net system rooms growth projection remains at approximately 1 percent.

In May, Choice reported 2.3 percent year-over-year growth in domestic RevPAR for the first quarter.