BWH Hotels is staying the course on long-term growth, investing in AI and developer support.
A new insurance program has saved some BWH hoteliers $50,000 to $60,000 annually.
It aims to reach 5,150 hotels in five years, with 300 deals signed last year and 200-plus in the pipeline.
BWH HOTELS IS maintaining its long-term growth strategy despite market uncertainties, with President and CEO Larry Cuculic citing momentum across core markets. The company is investing in AI, supporting developers and focusing on long-term goals.
It has also launched support programs to ease pressure from rising costs, Cuculic and Brad LeBlanc, BWH’s senior vice president and chief development officer, said during an interview at AAHOA’s 2025 Convention and Trade Show. BWH generated $8 billion in revenue in 2023 and operates more than 4,500 hotels in 100 countries and territories, according to its website. Its loyalty program has 53 million members, and Cuculic is optimistic.
“We’re a resilient industry and at BWH Hotels, we’re an optimistic company. We look at challenges as opportunities, and we've been meeting as a team,” Cuculic said. “When a challenge presents itself, I think you have to look at how you're going to react, and if the strategies you put in place are still the strategies you are going to execute, and for us, they are. We see nothing to lead us to change course of our long term strategies, and that includes our investments in technology, marketing and sales.”
LeBlanc said developers should look at the long-term trajectory of the industry. He cited previous challenges, from high oil prices in the 1970s to the 9/11 attacks and COVID.
“We've been through a lot. We've been through a lot of turbulence and the industry ends up on the other side better than it was,” he said. “Look at a long trend, and the trend doesn't change. It's just straight up. People want to travel. It's demand for lodging, and that's what we do,
Still, Cuculic said they are “being thoughtful, watching carefully.” At the same time, the company continues to provide support for its owners.
“When headwinds appear, you reassess—but nothing so far suggests a need to shift course,” he said. “We’re focused on the long term: investing in AI, technology, marketing and sales, while integrating those tools across development, revenue management and operations to stay efficient and effective.”
Following a vision
Part of BWH’s planning for the future was to set a target of reaching 5,150 hotels globally in five years. Cuculic said the goal is achievable if you remember that BWH is a global company. It signed 300 deals last year and has more than 200 hotels in the pipeline.
“You don't just create that kind of a vision,” he said. “You have to drive revenue. You have to drive brand contribution. You have to have a strong loyalty program. That's how you get there.”
In June, BWH reported that it added nearly 100 new hotels globally in the first half of 2025. Most were in Latin America, the Middle East and Asia Pacific, and in areas following traveler interests and trends like cultural discovery, wellness, and outdoor adventure.
"The first half of 2025 has been nothing short of transformative for BWH Hotels. We've not just added hotels; we've strategically expanded our footprint, igniting our growth trajectory worldwide. This remarkable achievement is a testament to the unwavering dedication of our partners and hoteliers, who share our vision for unparalleled hospitality,” Cuculic said in a statement.
Cuculic also said the company is seeing growth in markets including North America, India, the Middle East, South America, Europe and Scandinavia. Cuculic said India remains a core opportunity.
“I was just in India. Everybody there is tremendously positive,” he said.
That positivism is driven by the policies of India Prime Minister Narendra Modi, Cuculic said.
“He's investing in the infrastructure, highways and airports, which allows people to travel. It encourages travel,” he said. “As you're encouraging travel, based upon that growth of the infrastructure, hotels will follow. So, everyone is very bullish.”
In January, BWH Hotels announced plans to expand WorldHotels into India, Bangladesh, and Sri Lanka. The company, which acquired WorldHotels in 2019, is now present in South Asia through
Sorrel Hospitality, its New Delhi–based master franchisee. Indian media reported that Sorrel will extend operations into Bangladesh and Sri Lanka.
Brand strategy
BWH segmented its brand portfolio to match developer needs across different regions and cycles. Its brands cover extended stay with @Home, Executive Residency and SureStay Studio; boutique and upscale: Aiden and Sadie; economy: SureStay; and soft branding: WorldHotels.
LeBlanc also said clarity in brand positioning is critical for development traction.
“You have to have a brand that meets developers where they are in their development appetite,” he said. “I would say that BWH is an organization that, over the last five to 10 years, has done a really good job putting its swim lanes in place as it built a brand family.”
During BWH’s owners’ conference last year, LeBlanc said extended‑stay brands ruled the pipeline. That hasn’t changed, he says now, with strong interest by the company’s franchisees.
“When the capital markets improve, and they will, extended stay is going to be on the front side of that line,” he said.
The company is focusing on extended stay in sectors such as healthcare, workforce housing and energy. Cuculic said the healthcare industry has a growing need for hotels to house traveling medical professionals.
“As we have an aging population, health care needs are expanding, and extended stay near health facilities are huge opportunity,” Cuculic said. “That's where people need us, and I'm using that term need us because it’s almost humanitarian to have a long term, extended stay, term hotel near those kinds of facilities.”
LeBlanc said other industries with itinerate work forces support extended stay.
“I love the oil and gas business,” he said. “I absolutely love the world of energy, and as energy plugs into what I think it will in the next four or seven years, extended stay will be again at the forefront of that development.”
The company is also expanding into outdoor lodging. Zion Wildflower Resort in Zion National Park, Utah, its first glamping project, launched with strong presale performance. Leblanc said Tony Nelson, Wildflower’s managing partner, was pleased with the presale season.
“He, by all means, is smiling ear to ear,” he said. “When we plugged him into this $9 billion reservation system that we have, he doesn't need much of that to be a big success. He was already a minimum of 50 percent occupancy.”
A second property, Pico Bonito Lodge, has been signed in Honduras.
“It’s upscale, it's luxury. They're actually renovating to even make it more upscale,” LeBlanc said. “It's going to be a neat opportunity for us to walk into what I call outdoor hospitality. I'm a believer that outdoor hospitality is going to be a big piece of our business in the future.”
‘Tariff impact limited so far’
Both executives said the company is monitoring the impact of tariffs and material costs on hotel development. So far, they do not see any major disruption.
“It's those projects that are entering the construction mode that are having to step back and go, ‘All right, what's my lumber look like? What's my sheetrock look like, what's my metal look like, what's my wood look like? And so, that's left to be seen.”
Cuculic said BWH continues to take a “cautiously optimistic” view.
Luxury hotel demand exceeds supply in India due to entry barriers, JM Financial reported.
Land, regulation, zoning, costs and long gestation hinder expansion.
Luxury room demand is projected to grow 10.6 percent CAGR from fiscal 2024–2028.
THE LUXURY HOTEL sector in India faces strong demand, but supply is constrained by high entry barriers, according to a JM Financial study. Land availability, regulations, zoning laws, capital costs and long gestation periods hinder expansion.
Demand for luxury hotel rooms is rising, driven by higher incomes and a shift toward premium experiences, boosting ADR and occupancy, Economic Times reported, citing the study. Luxury rooms demand is projected to grow at a CAGR of 10.6 percent between fiscal 2024 and fiscal 2028, while supply is expected to rise 5.9 percent over the same period.
Upscale and upper-upscale segments accounted for 34 percent of properties signed in 2024, up from 26 percent in 2023, HVS Anarock reported, according to ET. The luxury segment rose to 9 percent, nearly doubling its share from 5 percent last year.
Higher incomes, a demand-supply gap, shifting consumer preferences and limited luxury hotel inventory drove ARR growth and occupancy in the luxury segment from fiscal 2014 to fiscal 2024, the report said.
India’s hospitality industry had about 3.4 million keys as of March 31, 2024, the study said.
The organized sector—branded hotels, aggregators and quality independent hotels—accounted for 11 percent or about 375,000 keys. Of this, branded hotels made up 45 percent or about 170,000 keys, while the luxury segment comprised 17 percent of the branded market or about 29,000 keys.
ICRA reported that India’s hospitality sector is expected to grow 6–8 percent in the current fiscal year.
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Peachtree adds six hotels to third-party platform.
Five are owned by La Posada Group, one by Decatur Properties.
Third-party portfolio totals 42 hotels.
PEACHTREE GROUP’S HOSPITALITY management division added six hotels to its third-party management platform. Five are owned by La Posada Group LLC and one by Decatur Properties Holdings.
La Posada’s hotels include Fairfield Inn Evansville East in Evansville, Indiana; Fairfield Inn Las Cruces and TownePlace Suites Las Cruces in Las Cruces, New Mexico; and SpringHill Suites Lawrence Downtown and TownePlace Suites Kansas City Overland Park in Kansas, Peachtree said in a statement.
It also assumed management of Decatur Properties’ Hampton Inn in Monahans, Texas.
“Our third-party management business is experiencing growth and these six hotels demonstrate the trust owners are placing in our team,” said Vickie Callahan, president of Peachtree’s hospitality management division. “We have experience managing hotels and managing operations for partners who have entrusted us with their assets. We are committed to protecting asset value, driving results for partners and delivering a strong guest experience.”
The division manages hotels across brands and markets nationwide, the statement said. It operates 115 hotels across 29 brands with 14,212 rooms in 27 states and Washington, D.C. The additions bring its total third-party operations to 42 hotels.
Callahan said the team uses scale, operating systems and brand relationships to optimize revenue, control costs and improve guest satisfaction.
Atlanta-based Peachtree is led by Greg Friedman, managing principal and CEO; Jatin Desai, managing principal and CFO and Mitul Patel, principal.
In July, Peachtree launched a $250 million fund to invest in hotel and commercial real estate assets mispriced due to capital market illiquidity.
The Highland Group: Extended-stay occupancy, RevPAR and ADR declined in August.
Room revenue rose 0.4 percent, while demand increased 2.2 percent.
August marked the second time in 47 months that supply growth exceeded 4 percent.
U.S. EXTENDED-STAY OCCUPANCY fell 2.1 percent in August, its eighth consecutive monthly decline, while ADR declined 1.8 percent and RevPAR dropped 3.9 percent for the fifth consecutive month, according to The Highland Group. However, total extended-stay room revenue rose 0.4 percent year over year.
The Highland Group’s “US Extended-Stay Hotels Bulletin: August 2025” noted that summer leisure travel has a greater impact on the overall hotel industry than on extended-stay hotels.
“August’s performance metrics further indicated that economy extended-stay hotels are weathering the hotel industry downturn better than most hotel classes, especially at lower price points,” said Mark Skinner, The Highland Group partner.
The 2.1 percent drop in extended-stay hotel occupancy in August was the eighth straight month of decline, the report said. Occupancy declined more than the 1.3 percent drop STR/CoStar reported for all hotels. However, extended-stay occupancy was 11.3 percentage points higher than the overall hotel industry, consistent with long-term late-summer trends.
The 1.8 percent decline in extended-stay ADR was partly due to a larger share of economy supply in August 2025 versus August 2024, the report said. Economy extended-stay ADR fell for the first time since May 2024 but outperformed the 3.4 percent drop for all economy hotels reported by STR/CoStar. Mid-price extended-stay ADR also declined, while upscale extended-stay ADR fell more than upscale hotels overall.
RevPAR fell 3.9 percent in August, the fifth straight monthly decline and the largest in 2025. The overall drop was greater than individual segment decreases because economy supply made up a larger share than in August 2024. STR/CoStar reported RevPAR declines of 5.7 percent for economy, 2.6 percent for mid-price and 2 percent for upscale hotels.
Revenue, demand and supply trends
Extended-stay room revenue rose 0.4 percent in August from a year earlier, The Highland Group said. STR/CoStar reported overall hotel revenue fell 0.1 percent and excluding luxury and upper-upscale segments, revenue fell 2 percent. STR/CoStar also reported August room revenue declines of 6.4 percent for economy hotels, 1.4 percent for midscale and 0.7 percent for upscale compared to August 2024.
Extended-stay demand rose 2.2 percent in August, the second-largest monthly increase in seven months. STR/CoStar reported total hotel demand fell 0.4 percent. Adjusting for the extra day in February 2024, extended-stay demand has grown in 32 of the past 33 months.
August was the second time in 47 months that supply growth exceeded 4 percent, the report said. Supply has risen about 3 percent year to date. Annual supply growth ranged from 1.8 to 3.1 percent over the past three years, below the long-term 4.9 percent average.
The 8 percent rise in economy extended-stay supply, with minimal change in mid-price and upscale rooms, is mainly due to conversions, as new economy construction accounts for about 3–4 percent of rooms compared to a year ago.
The Highland Group reported that economy, mid-price and upscale extended-stay segments led first-quarter 2025 RevPAR growth over their class counterparts. The report noted 602,980 extended-stay rooms at quarter-end, a net gain of 17,588 rooms over the past year, the largest in three years.
U.S. hotel metrics hit weekly and yearly lows for the last week of September, CoStar reports.
Las Vegas posted the largest year-over-year declines across key metrics.
Occupancy fell in 21 of the top 25 markets.
U.S. HOTEL METRICS declined for the week ending Sept. 27, hitting weekly and yearly lows, according to CoStar. Overall, 21 of the top 25 markets saw a drop in occupancy.
Occupancy fell to 65.6 percent for the week ending Sept. 27, down from 68.1 percent the previous week and 4.2 points lower than the same week last year. ADR declined to $166.48 from $168.98, a 2.5 percent year-over-year decrease. RevPAR fell to $109.15 from $115.12, down 6.6 percent from the same week in 2024.
Among the top 25 markets, Las Vegas posted the largest year-over-year declines across all key metrics: occupancy fell 23 percent to 66.1 percent, ADR dropped 20.1 percent to $195.31 and RevPAR slid 38.5 percent to $129.04.
New Orleans reported the second-largest declines: occupancy fell 21.1 percent to 48.4 percent, ADR dropped 14.9 percent to $131.54 and RevPAR fell 32.8 percent to $63.65.
AHLA Foundation distributed $710,000 in scholarships to 246 students.
Nearly 90 percent of recipients come from underrepresented communities.
The foundation funds students pursuing education and careers in the lodging sector.
AHLA FOUNDATION DISTRIBUTED $710,000 in academic scholarships to 246 students at 64 schools nationwide for the 2025–2026 academic year. Nearly 90 percent of recipients are from underrepresented communities, reflecting the foundation’s focus on expanding access to hospitality careers.
The foundation awards academic scholarships annually to students in hospitality management and related programs, it said in a statement.
“Our scholarship program is helping ensure the next generation of talent has the resources to pursue careers in the hospitality industry,” said Kevin Carey, AHLA Foundation's president and CEO. “We’ve invested millions of dollars over the last several decades to recruit and support future leaders who will strengthen our industry.”
It provides funding to help students pursue education and careers in the lodging sector, the statement said. Award decisions are based on applicants’ academic performance, extracurricular involvement, recommendations and financial need.
In September, AHLA Foundation, the International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration announced plans to expand education opportunities for hospitality students. The alliance aim to provide data, faculty development and student engagement opportunities.