Skip to content

Search

Latest Stories

STR, TE project positive growth for U.S. hotels in 2024-25

The 2025 occupancy growth projection was increased by 0.2 percentage points

STR, TE project positive growth for U.S. hotels in 2024-25

STR AND TOURISM Economics updated their 2024-25 U.S. hotel forecast, raising projected occupancy by 0.2 percentage points and revising the previous forecast of a year-over-year decline. However, ADR gains were downgraded by 0.1 percentage points, while RevPAR remained unchanged at a 2 percent year-over-year increase.

The occupancy growth projection for 2025 was also lifted by 0.2 percentage points, while ADR and RevPAR increases remained at 2 percent and 2.6 percent, respectively, STR and TE said in a joint statement.


“Midscale and economy hotels are continuing to feel the effect of fewer lower-income travelers,” said Amanda Hite, STR’s president. “On the other hand, high-income households continue to travel, but domestic levels are constrained due to an increase in outbound travel. The stronger dollar continues to pressure international inbound demand, especially as the cost-of-living crisis continues in Europe and airlift rebuilds across Asia Pacific.”

In June, STR and TE significantly downgraded the 2024-25 U.S. hotel forecast, reflecting lower-than-expected performance and reduced growth projections for the year.

“Economic growth is expected to be slower next year, but with strong household balance sheets, a gradual upswing expected in business investment, and moderating inflation, we anticipate a favorable context for moderate travel growth, said Aran Ryan, TE’s director of industry studies.

“Further gains in international inbound travel, as well as in business and group travel, are also expected to help support lodging demand growth next year.”

Hite said annual GOP and EBITDA margins are forecasted to improve slightly year over year.

“For 2025, higher growth is expected across both metrics due to lower labor costs, which are set to decrease slightly for a majority of the chain scales,” she said. “Upper midscale chains are still expected to maintain the lowest labor costs this year, with 2025 levels forecasted to come in $168 lower than luxury chains.”

In January, STR and TE projected ADR to rise by 0.1 percentage points in 2024, with occupancy and RevPAR unchanged. However, 2025 projections were revised downward, with occupancy reduced by 0.1 points, ADR by 0.3 points, and RevPAR by 0.5 points.

More for you

Marriott Outdoor Collection

Marriott unveils 'Outdoor Collection'

Summary:

  • Marriott launches Outdoor Collection and Bonvoy Outdoors platform.
  • First two brands are Postcard Cabins and Trailborn Hotels.
  • Platform features 450+ hotels, 50,000 homes and activities.

MARRIOTT INTERNATIONAL RECENTLY launched the brand “Outdoor Collection by Marriott Bonvoy” and introduced “Marriott Bonvoy Outdoors,” a digital platform that lets travelers plan trips by destination or activity. The first two brands in the Outdoor Collection are Postcard Cabins and Trailborn Hotels.

Keep ReadingShow less
Peachtree adds six hotels to its third-party management platform
Photo credit: Peachtree Group

Peachtree picked to manage six hotels

Summary:

  • 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.

Keep ReadingShow less
AHLA Foundation scholarships

AHLA Foundation awards $710K in scholarships

Summary:

  • 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.

Keep ReadingShow less
U.S. government shutdown
Photo by Kevin Dietsch/Getty Images

Congressional deadlock shutters government

Summary:

  • The U.S. government shut down at midnight after Congress failed to agree on funding.
  • About 750,000 federal employees will be furloughed daily, costing $400 million.
  • Key immigration and labor programs are halted.

THE FEDERAL GOVERNMENT shut down at midnight after Republicans and Democrats failed to agree on funding. Disputes over healthcare subsidies and spending priorities left both sides unwilling to accept responsibility.

Keep ReadingShow less
U.S. government shutdown 2025 news
Photo by Andrew Harnik/Getty Images

Trump, Congress face shutdown deadline

Summary:

  • President Donald Trump will meet Congress as a shutdown looms.
  • Democrats say they are ready to negotiate a bipartisan deal.
  • Thousands of federal jobs and the U.S. travel economy are at risk if a shutdown occurs.

PRESIDENT DONALD TRUMP will meet Congressional leaders on Monday after Senate Democrats rejected a Republican stopgap spending bill to fund the government until Nov. 21. The U.S. Travel Association recently warned a government shutdown could cost the travel economy $1 billion a week.

Keep ReadingShow less