Skip to content

Search

Latest Stories

CBRE: RevPAR to grow 1.3 percent in 2025

The recent forecast assumes 1.4 percent GDP growth in 2025

CBRE: US Hotel RevPAR to Grow 1.3 Percent in 2025

U.S. hotel RevPAR is expected to grow 1.3 percent in 2025, driven by urban, drive-to and regional leisure demand, according to CBRE.

U.S. HOTEL REVPAR is expected to grow 1.3 percent in 2025, supported by urban markets from group and business travel and increased demand for drive-to and regional leisure destinations, according to CBRE. Occupancy is forecast to rise 14 basis points and ADR 1.2 percent year-over-year.

This represents slower growth than CBRE’s February forecast, which projected 2 percent RevPAR growth based on a 21-basis-point increase in occupancy and a 1.6 percent rise in ADR, the commercial real estate and investment firm said.


“Economic and geopolitical uncertainties aside, several factors will drive RevPAR growth in 2025. These include an uptick in group and business travel, along with a weaker U.S. dollar and lower airfares, which may encourage domestic travelers to stay closer to home while boosting inbound international visitation to the U.S.,” said Rachael Rothman, CBRE’s head of hotel research and data analytics. “These trends are expected to particularly benefit urban hotels, regional resorts and drive-to destinations.”

CBRE’s forecast is based on 1.4 percent GDP growth for 2025, down from 2.4 percent in February, and a 2.9 percent inflation rate, 40 basis points higher than earlier projected. Though slower, economic growth is expected to support the lodging industry’s performance.

CBRE projects RevPAR growth of 1 to 3 percent over the next few years. Events like the 2026 FIFA World Cup, the U.S. 250th anniversary, and the 2028 Summer Olympics will drive demand, along with a new Orlando theme park and other attractions. These, along with steady interest in national parks, gateway cities and domestic leisure destinations, are expected to sustain growth unless an economic downturn occurs.

Michael Nhu, CBRE’s senior economist and head of global hotels forecasting, said hotel demand and the economy are expected to grow more slowly, while supply growth will likely slow due to higher construction and financing costs and a tight labor market.

“This will enhance pricing leverage for hotel operators over the long term and benefit existing assets by increasing replacement costs,” he said.

The firm expects supply growth to average 0.8 percent annually over the next four years, half the industry's historical average. A decline in demand or a sharper-than-expected rise in construction costs could slow supply growth further.

The latest forecast includes 11 new leisure-focused markets such as Boulder, Colorado ski areas, California wine country, the Florida Panhandle and Utah national parks. The additions reflect recent travel shifts and highlight emerging opportunities.

CBRE recently reported 2.2 percent year-over-year RevPAR growth for the U.S. hotel industry in the first quarter, despite economic uncertainty.


More for you

Red Roof partners with FreedomPay to streamline payments in 700+ U.S. hotels
Photo credit: Red Roof

Red Roof taps FreedomPay for 700+ hotels

Summary:

  • Red Roof is contracting with FreedomPay to provide payments across its 700+ U.S. hotels.
  • The company will gain an integrated solution, improved service, cost savings and efficiency.
  • The company is investing in people and technology to advance the brand, president Zack Gharib told Asian Hospitality.

RED ROOF IS contracting with FreedomPay to provide payments across its portfolio of more than 700 hotels in the U.S. The company will receive an integrated payment solution, upgraded service, cost savings and operational efficiency, according to a statement.

Keep ReadingShow less
Gen Z Shifts Hotel Shopping: Tech, Experiences & Values

Survey: Gen Z redefines hotel shopping

Summary:

  • Younger consumers are redefining hotel discovery through platform-hopping and peer input, according to SOCi.
  • Fragmented search and discovery are reshaping how trust is built.
  • About one-third of consumers aged 18–34 report less brand loyalty than a year ago.

GEN Z IS RESHAPING hotel shopping through multiple platforms, peer input and real-time research, according to SOCi, a marketing platform for multi-location businesses. Unlike previous generations who relied on a single search engine or map app, the younger consumer moves through a series of smaller decisions - starting on TikTok, checking Reddit or Yelp and ending with a Google Maps search.

Keep ReadingShow less
Hotel Tech Advances; Outpaces Operational Readiness

Report: Tech outpaces readiness in hotels

  • A gap is growing between technological potential and operational readiness, with many hotel teams still early in AI use.
  • Distribution teams are evolving with limited resources and uneven investment in talent and automation.
  • The report outlines how commercial teams in hospitality are managing transformation.

THERE IS A widening gap between technological potential and operational readiness, with many hotel staff still early in using AI effectively, according to “The State of Distribution 2025” report. Despite the availability of technology, training, systems and workflows remain in development.

The second edition of the industry benchmark report—published by NYU SPS Jonathan M. Tisch Center of Hospitality and its Hospitality Innovation Hub, in collaboration with RateGain Travel Technologies and HEDNA—noted that as traveler expectations rise, aligning people, processes and platforms is becoming a driver of performance.

Keep ReadingShow less
Peachtree Group's Residence Inn by Marriott under construction in downtown San Antonio, topping out milestone reached, June 2025

Peachtree tops out San Antonio Residence Inn

Peachtree Hotel to Open in Summer 2026 with 117 Extended-Stay Rooms

PEACHTREE GROUP HELD a “topping out” for its Residence Inn by Marriott in downtown San Antonio, Texas, marking completion of the structural phase of the 10-story, 117-room hotel. The property, co-developed with Austin-based Merritt Development Group, is scheduled to open in summer 2026.

The extended-stay hotel will be owned by Peachtree and managed by its hospitality management division, the company said in a statement.

Keep ReadingShow less
Air India plane crash 2025
Photo by Sam PANTHAKY / AFP

Air India reducing flights after deadly crash

AIR INDIA WILL reduce international service on widebody aircraft by 15 percent through at least mid-July, according to media reports. The decision comes less than a week after the June 12 crash of an Air India airliner carrying 230 passengers and 12 crew members in Ahmedabad, India, that killed 246 but left one survivor among the passengers.

The airline said the reduced service due to the safety inspection of aircraft and ongoing geopolitical tensions in the Middle East, which have disrupted operations, resulting in 83 flight cancellations over the past six days, according to ABC News. Passengers can either reschedule their flights at no additional cost or receive a full refund.

Keep ReadingShow less