Vishnu Rageev R is a journalist with more than 15 years of experience in business journalism. Before joining Asian Media Group in 2022, he worked with BW Businessworld, IMAGES Group, exchange4media Group, DC Books, and Dhanam Publications in India. His coverage includes industry analysis, market trends and corporate developments, focusing on retail, real estate and hospitality. As a senior journalist with Asian Hospitality, he covers the U.S. hospitality industry. He is from Kerala, a state in South India.
CHOICE HOTELS INTERNATIONAL reported 2.3 percent year-over-year domestic RevPAR growth for the first quarter ended March 31, outperforming its competitive chain scales by 60 basis points. Net income rose 44 percent to $44.5 million, a 52 percent increase from the same period in 2024.
The company grew its global net rooms system by 2.8 percent, including 3.9 percent growth in the upscale, extended-stay and midscale portfolio compared to last year, Choice said in a statement.
"Choice Hotels generated another quarter of record financial performance and RevPAR outperformance, demonstrating the successful execution of our growth strategy," said Patrick Pacious, Choice’s president and CEO. “Our unique positioning has enabled us to outperform peers, gain market share, and emerge stronger even during economic uncertainty. With diversified growth avenues, a more resilient customer profile, and a strengthened brand portfolio, including a larger presence in the cycle-resilient extended-stay segment, we’ve established a stronger foundation for stability and long-term growth.”
Adjusted EBITDA rose 4 percent to $129.6 million and adjusted diluted EPS increased 5 percent to $1.34, both first-quarter records, the statement said. The domestic extended-stay segment expanded its net rooms portfolio by 10.8 percent, with a pipeline exceeding 40,000 rooms as of March 31, 2025.
Domestic RevPAR for the extended-stay portfolio rose 6.8 percent, outperforming the industry by 410 basis points, while RevPAR in the midscale and economy segments grew 1.7 percent and 7.1 percent, respectively, exceeding chain scale averages by 30 and 440 basis points, Choice said.
Partnership services and fees rose 28 percent to $25.4 million. Domestic average daily rate increased by 1.7 percent, and occupancy improved by 30 basis points, the company said. The domestic effective royalty rate grew by 8 basis points to 5.11 percent.
The domestic upscale, extended-stay, and midscale segments grew by 3.6 percent, while the international net rooms portfolio increased by 4.4 percent, with the international pipeline rising 13 percent since Dec.31, the statement said. The global upscale portfolio expanded 16.2 percent, with an 8 percent pipeline increase since year-end 2024, reaching more than 26,000 rooms. The global pipeline exceeded 95,000 rooms, including nearly 79,000 in the U.S.
The company revised its full-year outlook amid a shifting macroeconomic environment, projecting domestic RevPAR growth between -1 percent and 1 percent, it said. Full-year net income is expected to range between $275 million and $290 million, adjusted net income between $324 million and $339 million, and adjusted EBITDA between $615 million and $635 million. Global net system growth is forecast at approximately 1 percent.
Choice held its 69th Annual Convention, "Powering the Future," on April 29 at Mandalay Bay in Las Vegas, featuring a keynote by Patrick Pacious before thousands of owners, operators, and industry partners.
Peachtree Group originated a loan for Voyage Capital Group to develop the 146-key AC Hotel in Denver.
The financing combines senior debt and C-PACE funding.
Dallas-based Accurate Builders is the general contractor; the hotel is under construction and set to open in late 2026.
PEACHTREE GROUP ORIGINATED a loan for Voyage Capital Group to acquire and build the 146-key, seven-story AC Hotel by Marriott at Denver Gateway Park in Denver, Colorado. The financing combines senior debt and C-PACE funding to support the hotel's development and completion.
“This was a complex project with many moving parts, but we were able to bring it to fruition thanks to the team at Peachtree Group,” said Jai Desai. “Their expertise and commitment were instrumental in getting this deal across the finish line. A special thank you to Michael Harper and Peter Laack—we look forward to many more transactions together.”
Accurate Builders, also based in Dallas, is the project’s general contractor. Construction is underway, with the hotel expected to open in late 2026. Jai Desai also serves as president and CEO of Accurate Builders.
Peachtree completed 22 C-PACE transactions totaling $316.6 million in 2024, bringing its total to more than $1 billion—a milestone few firms reach in structured financing.
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HOSPITALITY AND LEISURE dealmakers entered 2025 with cautious optimism, but ongoing volatility in capital markets and trade policy has led to a reassessment of growth strategies, according to Pricewaterhouse Coopers. Large, transformative deals remain limited, while targeted M&A is helping operators adjust portfolios, refine strategy and expand digital capabilities.
PwC’s “Hospitality & Leisure: U.S. Deals 2025 Midyear Outlook,” based on S&P Global Market Intelligence, found that well-capitalized buyers view current conditions as an opportunity to acquire assets on favorable terms.
High borrowing costs, valuation gaps and policy uncertainty are limiting deal volume, the report said. Market participants with strong balance sheets and disciplined capital allocation remain positioned to act. Tariff uncertainty and trade challenges are curbing cross-border activity, while domestic-focused, service-oriented H&L operators remain more active in dealmaking.
Shifting sentiment around global travel may lead H&L operators to expand U.S. portfolios, using strategic deals to respond to evolving trends, PwC said. For brands reassessing market exposure, demographic focus, and asset-light strategies, divestitures are becoming a tool for portfolio realignment. H&L operators may use M&A to evaluate brands, geographies, and customer segments with the most potential and accelerate strategic shifts.
Operators are focusing on experience-driven growth, using M&A to enter luxury, lifestyle, and bespoke travel segments aimed at high-income consumers, as this group continues to drive U.S. consumption growth. Technology remains a priority, with acquisitions and partnerships advancing digital-first models, AI-driven systems and customer personalization.
Three of the largest H&L deals by value in 2024 involved private equity firms acquiring gaming operators at favorable valuations. While private equity remains cautious in early 2025, stock market volatility may create openings for financial buyers to return and influence M&A activity across the sector.
Amid continued economic uncertainty, H&L operators and investors should monitor emerging value opportunities. Distressed and underperforming assets may enter the market as volatility prompts exits. At the same time, steady demand for high-end travel and the need for digital transformation are guiding capital toward operational efficiency and long-term value.
The report advised monitoring interest rate policy and trade developments, which will influence valuations, deal pacing and consumer sentiment. Companies should focus on experience-led assets that appeal to high-spending, digitally native consumers—segments that support sustained revenue and growth.
It also recommended pursuing joint ventures and alliances to reduce risk in technology initiatives, including AI-driven engagement, cybersecurity, and automation. M&A should be used to reshape brand portfolios for resilience, with scalability offering potential for stronger returns compared to traditional expansion.
In July 2024, GlobalData reported 347 M&A, private equity, and venture financing deals in the global travel and tourism sector during the first half of the year, down 12.6 percent from 397 deals in the same period in 2023.
What is Canary Technologies and what does it do for hotels?
HOSPITALITY SOFTWARE PROVIDER Canary Technologies has closed an $80 million Series D funding round to support its global expansion in hospitality AI. California-based Canary, led by CEO Harman Singh Narula and President SJ Sawhney, is now valued at about $600 million.
The round was led by Brighton Park Capital, with participation from existing investors Insight Partners, F-Prime Capital, Thayer Ventures, Y-Combinator and Commerce Ventures. The fundraise follows a $50 million Series C round announced 12 months ago and caps a year that included partnerships with Best Western, Aimbridge Hospitality, Marriott, Wyndham, TUI Hotels & Resorts and others. Canary also launched new AI products, including AI Voice and Webchat.
“The hospitality industry is entering a new era powered by AI and we’re proud to be at the forefront of that transformation,” said Narula. “Through enterprise-grade solutions, we’re helping hotels run smarter, deliver faster service and create more personalized guest experiences at scale. This investment reflects the dedication of the team and the growing impact Canary is making across the industry.”
Sawhney said the milestone reflects the team’s ongoing work to build solutions for the industry.
“Our AI solutions are developed in close partnership with customers, built for hospitality and informed by hoteliers’ daily workflows,” he said. “When hotel partners seek better service, smarter operations, or improved guest experiences, our team works to turn those goals into reality with precision, scale and purpose.”
The announcement follows Canary’s broader growth, with its platform now used by more than 20,000 hotels in more than 100 countries. Its software includes mobile check-in and checkout, tablet registration, upsells, guest messaging, Canary AI and digital tipping.
“Canary’s scale and growth in travel and hospitality are unmatched,” said Kevin Magan, partner at Brighton Park Capital. “We’re pleased to partner with Harman, SJ and the team as they build on their momentum and strengthen their position in the market. Their focus on delivering enterprise-grade solutions positions them for long-term success.”
A recent HotStats blog post noted that hotels using updated competitive sets consistently outperform others.
IHG Hotels Drives RevPAR Growth and Expansion in USA for Q1 2025
IHG HOTELS & RESORTS posted a 3.3 percent increase in global RevPAR for the first quarter of 2025, led by 3.5 percent growth in the Americas. The company continued to grow with more than 25,000 rooms signed.
The Europe, Middle East, Asia & Africa region saw a 5 percent RevPAR gain, while Greater China saw a 3.5 percent decline, IHG said in a statement. Business travel revenue rose 3 percent, leisure 2 percent, and group bookings 5 percent, with global ADR increasing 2.2 percent and occupancy rising 0.6 percentage points.
“We had strong trading performance and development activity in the first quarter, despite increased macro volatility,” said Elie Maalouf, IHG's CEO. “Global RevPAR grew 3.3 percent, reflecting the strength of our diverse footprint and growth across business, leisure and groups.”
IHG’s system size expanded, with gross growth up 7.1 percent year-over-year and 1.5 percent year-to-date. The company opened 86 hotels with 14,600 rooms, more than double the same period in 2024. Net system size grew 4.3 percent year-over-year and held flat year-to-date.
Excluding the removal of rooms formerly affiliated with The Venetian Resort Las Vegas, net growth reached 5 percent year-over-year and 0.7 percent year-to-date, bringing IHG’s total to 987,000 rooms across 6,668 hotels, IHG said.
“A strong signings performance of 25,800 rooms across 158 properties was also well ahead of 2024, leading to a 9.4 percent year-on-year increase in our pipeline,” Maalouf said. “This included 5,700 rooms across 30 hotels from our February acquisition of the Ruby brand. Since then, two additional Ruby signings have been added. Demand for quick-to-market conversions remains high, representing about 60 percent of openings and 40 percent of organic signings this quarter.”
Excluding Ruby, signings totaled 20,200 rooms, up from 17,700 a year ago, the statement said. IHG’s global pipeline now stands at 334,000 rooms across 2,265 hotels, up 9.4 percent year-over-year.
“Looking ahead, while some forward economic indicators have softened, our on-the-books global revenue for the second quarter continues to show growth versus the same time last year,” Maalouf said. “Our ability to capture demand across geographies and chain scales, and our focus on domestic stay occasions, are core strengths. While still early, we remain on track to meet full-year consensus profit expectations.”
IHG has completed $324 million of its planned $900 million share buyback for 2025, reducing its share count by 1.9 percent. Maalouf said that long-term structural growth drivers for travel demand and supply remain intact for both the industry and IHG.
“The power of our growth algorithm comes from the compounding effect of increasing fee revenues through RevPAR, system expansion, and ancillary fees, which help grow margins,” Maalouf said. “Strong cash generation enables us to reinvest and return surplus capital to shareholders. Despite short-term macroeconomic uncertainty, we remain confident in the strength of our platform and our ability to build on our scale and market positions.”
IHG reported global RevPAR growth of 3 percent for 2024 and 4.6 percent in the fourth quarter, with the Americas up 2.5 percent for the year and 4.6 percent for the quarter. In February, the company acquired Germany-based Ruby for about $116 million, targeting global expansion, including in the Americas.
MARRIOTT INTERNATIONAL INC. reported a 4.1 percent year-over-year increase in RevPAR globally, with 3.3 percent growth in the U.S. and Canada and 5.9 percent in international markets. The company’s net income rose 18 percent to $665 million in the first quarter of 2025, up from $564 million in the first quarter of 2024.
The company added about 12,200 net rooms in the quarter, including more than 7,300 internationally, bringing its global system to nearly 9,500 properties and approximately 1.72 million rooms, Marriott said in a statement.
“The combination of continued travel demand, the strength of our brands, and our fee-driven business model drove strong financial results in the first quarter,” said Anthony Capuano, Marriott’s president and CEO. “Despite macroeconomic uncertainty, global RevPAR rose over 4 percent, mainly driven by higher ADR, and our development momentum remained positive. International markets saw robust growth, with RevPAR up nearly 6 percent, led by double-digit gains in APEC. RevPAR in the U.S. and Canada rose over 3 percent, although March growth slowed.”
Capuano also noted record first-quarter signings of over 34,000 rooms, two-thirds of which were in international markets. Conversions were a key driver, representing about a third of the signings and openings.
Mixed revenue streams
Base management and franchise fees grew 7 percent to $1.071 billion, driven by RevPAR gains, unit growth, and higher residential and cobranded credit card fees. Incentive management fees totaled $204 million, down slightly from $209 million a year ago, with nearly two-thirds from international markets.
Owned, leased, and other revenue, net of expenses, declined to $65 million from $71 million due to lower termination fees. General and administrative expenses fell to $245 million from $261 million, reflecting lower compensation costs from efficiency initiatives. Net interest expense rose to $183 million from $153 million, while the income tax provision dropped to $99 million from $163 million, due to an $86 million tax reserve release.
Operating income rose to $948 million from $876 million, and net income increased 18 percent to $665 million. Adjusted operating income reached $1.016 billion, adjusted net income was $645 million, and adjusted EBITDA grew 7 percent to $1.217 billion.
Pipeline and outlook
At the end of the first quarter, Marriott’s global pipeline included 3,808 properties and over 587,000 rooms, including 171 projects with 27,000 rooms approved but not yet under contract. The pipeline also featured 1,447 properties with nearly 244,000 rooms under construction, including conversions to the Marriott system. More than half of the rooms in the quarter-end pipeline are in international markets.
Marriott expects additional properties from its planned acquisition of citizenM, a Netherlands-based select-service brand. The acquisition, valued at $355 million, adds citizenM’s 36 open hotels with 8,544 rooms across more than 20 cities, including New York, London, Paris, and Rome, plus three pipeline hotels with over 600 rooms.
Capuano emphasized the company’s commitment to growing its global portfolio and enhancing offerings for guests, Marriott Bonvoy members, and hotel owners.
“We’re excited about citizenM’s global growth prospects, given its unique offering and our successful track record with acquired brands like AC Hotels,” he said. “Our net rooms growth outlook remains strong, with full-year 2025 net rooms growth expected to approach 5 percent, assuming the acquisition closes before year-end.”
Marriott’s updated outlook assumes continued booking trends, with somewhat softer expectations in the U.S. and Canada. The company expects worldwide RevPAR growth of 1.5 to 2.5 percent for the second quarter and 1.5 to 3.5 percent for full-year 2025. Net rooms growth is projected to approach 5 percent for full-year 2025, with adjusted EBITDA ranging from $1.370 billion to $1.390 billion for the second quarter and $5.285 billion to $5.425 billion for full-year 2025.
“Despite macroeconomic uncertainty, we are confident that the strength of our global portfolio, the Marriott Bonvoy platform, our associates, and our asset-light business model position us for sustainable, long-term growth,” said Capuano.