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

IHG Ruby Hotels USA launch
Photo credit: IHG Hotels & Resorts

IHG’s Ruby debuts in U.S. market

Summary:

  • IHG launched its 20th global brand, Ruby, in the U.S.
  • The brand offers serves city-centers and urban locations with restrictions.
  • It focuses on major urban markets with new-build, conversion, and adaptive reuse.

IHG HOTELS & RESORTS introduced Ruby Hotels, its 20th global brand, to the U.S. It is designed to fit in city centers and urban locations with entry barriers and space constraints.

Keep ReadingShow less
H-2B visa hospitality impact

Study: H-2B visas boost U.S. jobs and wages

Summary:

  • The H-2B visa program protects U.S. jobs and wages, according to AHLA citing a study.
  • It allows hotels and resorts to meet travelers’ needs while supporting the economy.
  • It provides foreign workers for seasonal jobs when domestic workers are unavailable.

THE H-2B VISA program does not harm U.S. jobs or wages but increases pay and supports the labor force, according to an Edgeworth Economics study. Citing that study, the American Hotel & Lodging Association said the program enables hotels and resorts to meet travelers’ needs while supporting the workforce and economy.

Keep ReadingShow less
AI digital assistant redefining guest loyalty in U.S. hospitality industry

Study: AI agents redefine hotel loyalty

Summary:

  • The use of AI agents hotels must rethink customer loyalty, a FAU study finds.
  • The paper proposes strategies as AI becomes the main booking channel.
  • Researchers warn of ethical and privacy issues.

HOTELS MUST RETHINK how they build and maintain loyalty as artificial intelligence systems make travel decisions and bookings for consumers, according to a study by Florida Atlantic University. The rise of artificial intelligence agents will complicate hotel customer loyalty management.

Keep ReadingShow less
HAMA Fall 2025 survey results

Survey: Hotels expect Q4 RevPAR gain

Summary:

  • More than 70 percent expect a RevPAR increase in Q4, according to HAMA survey.
  • Demand is the top concern, cited by 77.8 percent, up from 65 percent in spring.
  • Only 37 percent expect a U.S. recession in 2025, down from 49 percent earlier in the year.

MORE THAN 70 PERCENT of respondents to a Hospitality Asset Managers Association survey expect a 1 to 3 percent RevPAR increase in the fourth quarter. Demand is the top concern, cited by 77.8 percent of respondents, up from 65 percent in the spring survey.

Keep ReadingShow less
Peachtree Group DST Mansfield Texas

Peachtree adds Mansfield, TX, industrial asset to DST

Summary:

  • Peachtree launched new DST with 131,040‑square foot industrial facility in Mansfield, Texas.
  • The property was acquired at $180 per square foot.
  • Peachtree completed $320M in debt-free transactions across multiple markets since 2022.

PEACHTREE GROUP LAUNCHED its latest Delaware Statutory Trust with the acquisition of a newly built 131,040-square-foot industrial facility in Mansfield, Texas. The company has completed about $320 million in debt-free transactions since launching its DST program in 2022, according to its statement.

Keep ReadingShow less