AZE.US
Azerbaijan’s hotels hosted more guests and recorded more overnight stays in 2025, but the industry still ended the year with lower revenue.
The country had 885 hotels and other accommodation facilities during the year. The number of guests increased by 10.9%, while overnight stays rose by 6.7%.
Despite that growth, total hotel-sector revenue fell by 5.9% to 653 million manats.
The sharpest decline was recorded in room sales, the industry’s main source of income. Revenue from accommodation dropped from 454.5 million manats to 403.8 million manats.
Revenue per guest night fell by 16.7%, from 106.13 manats to 88.37 manats. At the same time, hotels faced higher spending on utilities, salaries, maintenance and taxes.
One of the sector’s main weaknesses is the short duration of visits. Travelers spend an average of just 1.73 nights in Azerbaijani hotels, meaning that growth in arrivals does not necessarily translate into comparable revenue gains.
Hotels also account for only 31.4% of all nights spent by foreign visitors in Azerbaijan. Many travelers stay in rented apartments, private homes or with relatives and friends.
Industry representatives also point to high travel costs. Airfare can account for 40% or more of some tour packages, making Azerbaijan less competitive for price-sensitive travelers.
Experts say the country needs closer cooperation with low-cost airlines and more affordable flight options to increase both tourist arrivals and the average length of stay.
Azerbaijan currently has 278 officially rated hotels. Of those, 201 – about 72% – are located in Baku.
AZE.US