Ed Brock is an award-winning journalist who has worked for various U.S. newspapers and magazines, including with American City & County magazine, a national publication based in Atlanta focused on city and county government issues. He is currently assistant editor at Asian Hospitality magazine, the top U.S. publication for Asian American hoteliers.
Originally from Mobile, Alabama, Ed began his career in journalism in the early 1990s as a reporter for a chain of weekly newspapers in Baldwin County, Alabama. After a stint teaching English in Japan, Ed returned to the U.S. and moved to the Atlanta area where he returned to journalism, coming to work at Asian Hospitality in 2016.
THE HOTEL INDUSTRY is poised for a fairly strong year in 2023 despite remaining concerns about a downturn, according to a pair of reports. Continuing demand is expected to overcome extra labor costs and economic vagaries to propel performance above pre-pandemic levels, according to the reports from the American Hotel & Lodging Association and STR.
The state of the industry
AHLA’s 2023 State of the Hotel Industry Report projects that demand, nominal room revenue and state and local tax revenue all are well on the way to recovery. Operational challenges, such as staffing shortages and economic factors will replace COVID as hoteliers’ top concerns, the report predicts.
The U.S. hotel industry is projected to achieve 1.3 billion occupied room nights in 2023, according to the American Hotel & Lodging Association’s 2023 State of the Hotel Industry Report, slightly exceeding 2019’s total.
“Three years after the unprecedented hardships our industry faced due to the pandemic, hotels continue to make significant strides toward recovery,” said Chip Rogers, AHLA president and CEO. “2022 saw one of the strongest summer travel seasons ever, and this year we expect hotels to reach new heights in terms of room revenue, room-night demand and state and local tax revenue. But when inflation is taken into account, our industry likely won’t see full recovery for several more years. Nevertheless, hotel performance is trending in the right direction – great news for our industry and our employees, who are enjoying better pay, more career opportunities, upward mobility and flexibility than ever before.”
Other results of the report, which is based on data and analysis from Oxford Economics in collaboration with STR, Avendra, Ecolab, Encore and Oracle, include:
2023 nominal room revenue is projected to reach new heights ($197.48 billion vs. $170.35 billion in 2019). While these numbers are not adjusted for inflation, and real revenue recovery will likely take several more years, the trendlines are positive.
2023 room-night demand is projected to surpass pre-pandemic levels (1.3 billion occupied room nights vs. 1.29 billion in 2019).
Hotels are expected to generate $46.71 billion in state and local tax revenue in 2023, up from $41.11 billion in 2019.
Average hotel occupancy is expected to reach 63.8 percent in 2023 – just shy of 2019’s 65.9 percent.
Staffing is expected to remain a significant challenge for U.S. hotels in 2023, with hotels projected to employ 2.09 million people in 2023, down from 2.35 million in 2019.
Inflation for a number of hospitality-related products will continue to run 5 percent to upwards of 10 percent for the next few quarters, according to AHLA Platinum Partner Avendra.
The report also forecasts that operational challenges such as staffing shortages and economic factors will replace COVID as hoteliers’ top concerns. Also, 70 percent of planners surveyed for Encore’s Fall 2022 Planner Pulse Report were either booking or actively sourcing new events, and 61 percent expected to have larger budgets in 2023.
STR forecasts modest gains
In their latest forecast for 2023, issued at the Americas Lodging Investment Summit on Jan. 23, STR and Tourism Economics upgraded their projections slightly from its previous forecast and lowered expectations for 2024. Occupancy for the year is now expected to reach 63.6 percent, 0.1 percent less than the previous forecast but still up from 2022’s 62.7 percent. ADR is now expected to rise 2.1 percent, 0.5 percent more than the original projection, while RevPAR is set to rise 3.7 percent, 0.3 percent more than originally expected.
Occupancy for 2023 is now expected to reach 63.6 percent, 0.1 percent less than the previous forecast but still up from 2022’s 62.7 percent, according to STR. ADR is now expected to rise 2.1 percent, 0.5 percent more than the original projection, while RevPAR is set to rise 3.7 percent, 0.3 percent more than originally expected.
For 2024, a 0.3 percent downgrade in occupancy coupled with a 0.1 percent lift in ADR meant a RevPAR downgrade of 0.4 percent. RevPAR, recovered fully in 2022 on a nominal basis but will not achieve that status when adjusted for real inflation until 2025.
“Even if the anticipated recession is more on the shallow side, performance growth in 2023 will be pretty remarkable,” said Amanda Hite, STR president. “Gains are slowing, however, with inflation rising at a faster rate than ADR. Demand continues to trend at record levels with continued strength in the leisure segment as well as a substantial return in group business. While improving, a deficit persists in business travel – a segment that is especially important for the upper-tier classes. Overall, much of the industry is in a solid position to navigate choppy waters ahead, and we will even see a return to the year-over-year benchmark as the pandemic calendar comparables are behind us.”
TE’s Aran Ryan, director of industry studies, was also cautiously optimistic.
“Oxford Economics’ baseline outlook anticipates the economy will experience a mild recession this year, characterized by a peak-to-trough decline in GDP of around 1 percent, and a roughly one percentage point increase in the unemployment rate,” Ryan said. “In this context, we expect lodging demand growth will slow but remain positive on a year-over-year basis as group events and international travelers return, and households continue to prioritize leisure travel.”
Choice launched two campaigns to boost bookings across its four extended-stay brands.
Based on guest feedback, the campaigns focus on efficiency, cleanliness, value and flexibility.
They will run through 2026 across social media, Connected TV, digital display and online video.
CHOICE HOTELS INTERNATIONAL launched two marketing campaigns to increase brand awareness and bookings across its four extended-stay brands. The "Stay in Your Rhythm" campaign promotes all four brands by showing how guests can maintain daily routines, while "The WoodSpring Way" highlights the service WoodSpring Suites staff provide.
The company has more than 550 extended-stay locations open, 51 under construction and more than 350 in the pipeline under Everhome Suites, MainStay Suites, Suburban Studios and WoodSpring Suites, Choice said in a statement.
"As leaders in the extended stay segment, Choice Hotels has long understood that this category is unlike any other in the hospitality industry, defined by distinct guest expectations that we continuously strive to exceed," said Noha Abdalla, Choice’s chief marketing officer. "These first-of-their-kind campaigns reflect our deep understanding of why people stay longer — from work assignments and relocations to life transitions and personal journeys. No matter the reason, we know our guests aren't looking to escape their routines; they're looking to maintain them. That's why we take pride in our unique position to offer what matters most: consistency, comfort and connection."
Both campaigns are based on research and guest feedback showing travelers prioritize efficiency, cleanliness, value and flexibility, the statement said. They will run through the rest of the year and into 2026 across paid social media, Connected TV, digital display and online video.
The "Stay in Your Rhythm" campaign shows how Choice's extended-stay brands support routines with in-room kitchens, laundry, fitness centers and pet-friendly options, Choice said. It focuses on daily habits like making coffee, cooking, walking the dog, or exercising.
"The WoodSpring Way" highlights how property teams support guests by providing home-like conveniences, the company said. General managers in Chicago, Denver, Atlanta and Orlando are featured for creating a consistent guest experience and welcoming all guests, including pets.
"We've designed our extended stay properties to ensure we provide guests with everything they need when circumstances take them away from home for weeks at a time," said Matt McElhare, Choice's vice president for extended stay brands. "Through the launch of our campaigns, we aim to educate the growing population of extended stay travelers on how our brands offer the best value in the industry, while also highlighting the culture of our flagship brand, WoodSpring Suites, which has consistently set the standard for guest satisfaction in the segment. We're especially thankful to our owners and management company teams who help build and sustain this culture on property, consistently delivering a great guest experience."
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Amex GBT and Chooose are launching a hotel emissions tracking tool to calculate users’ Hotel Carbon Measurement Initiative reporting requirements.
Emissions data in Amex GBT’s Global Trip Record and Data Lake ensures consistency across travel programs.
In January, Finland-based Bob W found hotel carbon emissions are five times higher than HCMI estimates.
SOFTWARE FIRMS AMERICAN Express Global Business Travel and Chooose are launching a hotel emissions tracking tool in the third quarter of 2025. The new tool, integrated into Amex GBT’s platforms, will provide standardized hotel emissions data to calculate users’ Hotel Carbon Measurement Initiative reporting requirements.
Chooose, which allows airline passengers to offset flight emissions, uses a hotel emissions calculation methodology aligned with HCMI reporting requirements, according to the companies. Clients can select emissions factor providers, including the UK Department for Business, Energy & Industrial Strategy and Greenview, both aligned with the same methodology, Amex GBT said in a statement.
“This is about giving our clients better data, better tools and better decision-making power,” said John Sturino, Amex GBT’s senior vice president for product and engineering. “We’ve engineered this capability to deliver more granular emissions data, deeply integrated into our platforms, so customers can access the insights they need, where they need them.”
Emissions data stored in Amex GBT’s systems include the Global Trip Record and Data Lake, the statement said. It complements traveler-facing hotel sustainability tools at point of sale, such as eco badges and filters for hotels with EV charging. The tool also supports Amex GBT’s Consulting and Meetings & Events teams with reporting capabilities.
Nora Lovell Marchant, Amex GBT’s vice president of global sustainability, said more accurate data can help companies assess the environmental impact of their travel programs.
“It’s part of our broader effort to provide the tools and insights that support more sustainable travel choices,” she said.
HCMI is a free tool created by the World Sustainable Hospitality Alliance for hotels to calculate the carbon footprint of hotel stays and meetings in their properties.
In January, Finland-based hospitality operator Bob W found that hotel carbon emissions are five times higher than estimates from frameworks such as HCMI. Bob W and UK-based consultancy Furthr developed the Lodging Emissions & Guest-night Impact Tracker to provide a broader view of the sector’s environmental impact.
Marriott International completed its $355 million acquisition of citizenM, a Netherlands-based select-service brand.
Integration into Marriott’s systems is underway.
Founded in 2008 by Rattan Chadha, citizenM targets travelers seeking smart room design, shared spaces.
MARRIOTT INTERNATIONAL COMPLETED its $355 million acquisition of citizenM, a Netherlands-based select-service brand founded by Rattan Chadha, as announced in April. CitizenM’s portfolio includes 37 hotels with 8,789 rooms across more than 20 cities in the U.S., Europe and Asia Pacific.
Its pipeline of two hotels totaling more than 300 rooms is expected to be added to Marriott’s portfolio, the company said in a statement.
“As travelers continue to seek lodging that blends technology with service, citizenM is a strong addition to our portfolio,” said Anthony Capuano, Marriott’s president and CEO. “Marriott has a track record of growing select-service lifestyle brands, including AC, Moxy and Aloft and we look forward to expanding citizenM’s global reach with our guests and Marriott Bonvoy members.”
With the acquisition complete, Marriott will begin integrating citizenM into its systems, the company said. Until integration is finished later this year, citizenM properties will remain bookable through citizenM’s digital channels. Subscription program members will continue to receive benefits, with more details to follow after integration.
Once integrated, citizenM will join the Marriott Bonvoy loyalty program.
Founded by Chadha in 2008, citizenM targets travelers seeking smart room design, common areas with artwork and local artifacts, shared living rooms, meeting spaces, grab-and-go F&B and rooftop decks.
Hilton reported 7.5 percent net unit growth in the second quarter while systemwide RevPAR declined 0.5 percent year-over-year.
Net income and adjusted EBITDA for the first half of 2025 were $742 million and $1.8 billion, up from $690 million and $1.67 billion YoY.
For the third quarter of 2025, Hilton expects systemwide RevPAR to be flat to slightly down.
HILTON WORDLWIDE HOLDINGS reported 7.5 percent net unit growth in the second quarter of 2025, however systemwide RevPAR declined 0.5 percent year-over-year. The company said economic fluctuations are being felt but not hindering performance.
The company approved 36,200 rooms for development, bringing its pipeline to a record 510,600 rooms, up 4 percent year-over-year excluding acquisitions and strategic partner hotels. It added 26,100 rooms in the quarter, resulting in 22,600 net additions and 7.5 percent net unit growth over the year, Hilton said in a statement.
“We continued to demonstrate the power of our resilient business model as we delivered strong bottom line results in the quarter, even with modestly negative top line performance given holiday and calendar shifts, reduced government spending, softer international inbound business and broader economic uncertainty,” said Christopher Nassetta, Hilton’s president and CEO. “With that being said, we believe the economy in our largest market is set up for better growth over the intermediate term, which should accelerate travel demand and, when paired with low industry supply growth, unlock stronger RevPAR growth.”
Meanwhile, on the development side, Nassetta said growth was strong.
“We achieved the largest pipeline in our history, and we remain confident in our ability to deliver net unit growth between 6 percent and 7 percent for the next several years,” he said.
Systemwide comparable RevPAR declined 0.5 percent for the three months ended June 30, 2025, compared to the same period in 2024, due to lower occupancy partially offset by ADR gains, the statement said. For the six-month period, RevPAR rose 1 percent year-over-year, driven by higher ADR. Management and franchise fee revenue rose 7.9 percent year-over-year.
Net income and adjusted EBITDA were $742 million and $1.8 billion, respectively, for the six months ended June 30, compared to $690 million and $1.67 billion for the same period in 2024.
Pipeline and outlook
Hilton opened 221 hotels totaling 26,100 rooms in the second quarter of 2025, resulting in 22,600 net room additions. Its luxury and lifestyle portfolio grew to more than 1,000 hotels globally.
Hilton added 36,200 rooms to its development pipeline in the second quarter. As of June 30, the pipeline totaled 3,636 hotels with 510,600 rooms across 128 countries and territories, including 29 where it had no existing hotels.
Nearly half of the rooms were under construction with more than half outside the U.S.
Hilton projects systemwide comparable RevPAR to range from flat to up 2 percent in 2025 compared to the prior year. Net unit growth is expected between 6 percent and 7 percent. The company anticipates adjusted EBITDA between $3.65 billion and $3.71 billion, with general and administrative expenses projected between $420 million and $430 million. Net income is expected to range from $1.64 billion to $1.68 billion.
For the third quarter of 2025, Hilton expects systemwide comparable RevPAR to be flat to slightly down from the same period in 2024. Adjusted EBITDA is projected to range between $935 million and $955 million, while net income is expected to be between $453 million and $467 million.
Peachtree provided a $42 million floating-rate loan to Banyan Street Capital for the acquisition and repositioning of Atlanta Financial Center in Buckhead.
The deal delivers capital at a reset basis, with comps pricing 98 percent higher, reflecting strong collateral and execution.
It recently launched a $250 million fund to invest in hotel and commercial assets mispriced from market illiquidity.
PEACHTREE GROUP PROVIDED its first mortgage loan to Banyan Street Capital for the acquisition and repositioning of the 914,774-square-foot Atlanta Financial Center in Buckhead, Georgia. Peachtree said the office sector is at an inflection point, similar to the retail segment previously.
The $42 million floating-rate loan has a 36-month initial term and a 12-month extension option, with interest and completion guarantees from Banyan Street. The deal provides flexible capital for transitional assets at a reset basis, with comparable transactions pricing 98 percent above the loan basis, reflecting collateral strength and execution, Peachtree said in a statement.
“This transaction highlights how private credit continues to fuel opportunities across the commercial real estate landscape,” said Daniel Siegel, Peachtree’s president and principal of CRE. “In today’s volatile environment of elevated interest rates and persistent inflation, private credit remains a critical source of capital.”
Siegel said negative sentiment is preventing some from seeing opportunities.
“The market is bifurcated, with most vacancy tied to troubled assets, and when you adjust for those, the fundamentals tell a different story,” he said. “While sentiment will take time to shift, we’re ready to back smart business plans in this space.”
The private credit market continues to fill the gap left by traditional lenders, providing certainty for sponsors with defined strategies, the statement said.
Atlanta-based Peachtree is led by CEO and managing principal Greg Friedman, managing principal and CFO Jatin Desai and principal Mitul Patel.
“This transaction reflects a careful approach to how we de-risk—by structuring a basis reset in a top submarket with an experienced sponsor and a clear repositioning plan,” Siegel said.
Banyan plans to reposition AFC, starting with leasing the North Tower, using reserves for capital expenses, tenant improvements, and leasing. It will also explore larger tenants and redevelopment options.
While the broader office market faces headwinds, Buckhead remains a strong submarket, supported by financial firms, MARTA access, highway connectivity and retail and hospitality infrastructure, Peachtree said. Limited new supply, declining sublease inventory, and steady tenant demand position Buckhead and AFC for recovery and growth.
“Borrowers are seeking flexible capital that can adjust to changing market conditions, and that’s what we’re delivering,” said Jared Schlosser, head of originations and CPACE at Peachtree. “By providing execution certainty, we’re giving sponsors the runway to carry out their plans.”
Peachtree recently launched a $250 million fund to invest in hotel and commercial real estate assets mispriced due to capital market illiquidity.