Skip to content

Search

Latest Stories

CBRE: U.S. RevPAR expected to grow in 2025

RevPAR in 2025 is expected to be 16.6 percent above 2019 levels

  CBRE forecasts steady U.S. RevPAR growth in 2025, driven by urban demand, global events, and strong hotel investment trends

U.S. RevPAR is set to grow in 2025, driven by urban markets and increased group, business and international travel, according to CBRE.

Steady U.S. RevPAR Growth Forecast for 2025, Driven by Urban Demand

U.S. REVPAR IS expected to grow steadily in 2025, supported by urban markets benefiting from improved group and business travel and inbound international recovery, according to a recent CBRE study. The firm expects a 2 percent increase, with occupancy up 23 bps and ADR rising 1.6 percent.

RevPAR in 2025 is projected to be 16.6 percent above 2019 levels, reflecting the lodging industry's continued recovery, CBRE said in a statement.


“The U.S. hotel market is poised for steady growth in 2025, primarily led by continued outperformance of the urban segment, which should experience RevPAR growth of 2.8 percent this year,” said Rachael Rothman, CBRE’s head of hotel research and data analytics. “The sector’s resilience and the sustained demand for higher-priced hotels bode well for the upcoming year.”

CBRE anticipates 2.4 percent GDP growth and 2.5 percent inflation in 2025. With GDP closely tied to RevPAR, economic strength will directly impact lodging performance.

Over the next few years, RevPAR is expected to grow between 1.5 percent and 3.5 percent, due to major events like the 2026 FIFA World Cup, the U.S.’ 250th anniversary, and the 2028 Olympics, along with continued demand for national parks, gateway cities and leisure destinations—barring a recession, the research firm found.

Bill Grice, CBRE Hotels' Americas president, said U.S. hotel fundamentals remain strong despite cost pressures, with investment activity expected to pick up in late 2025.

“With ample dry powder available and the potential for a lower Fed funds rate before year-end, we expect to see a narrowing of buyer and seller expectations, fueling increased transaction activity,” he said.

Hotel supply growth is expected to remain below 1 percent over the next three years due to high financing and construction costs, the statement said. Additional tariffs, labor shortages, or limited Fed rate cuts could further constrain supply, boosting pricing power and replacement costs.

CBRE recently reported growing optimism among U.S. hotel investors, with 94 percent planning to maintain or increase investments this year, up from 85 percent in 2023, driven by better returns, distressed opportunities and favorable pricing.

More for you

San Francisco leads U.S. hotel occupancy growth for the week ending June 21, while Las Vegas posts declines in RevPAR

CoStar: June 21 week sees hotel metrics rise

Key Summary
  • U.S. hotels posted weekly and annual gains for the week ending June 21.
  • San Francisco led in year-over-year occupancy, up 17.2 percent to 72.2 percent, with RevPAR up 26.7 percent to $141.09.
  • Las Vegas saw the steepest drops in occupancy and RevPAR.

U.S. HOTEL METRICS improved for the week ending June 21, with gains both week over week and year over year, according to CoStar. San Francisco led the top 25 markets in both occupancy and ADR growth versus the same week last year.

Occupancy increased to 70.5 percent for the week ending June 21, up from 68.6 percent the previous week and 1.3 percent higher than the same week last year. ADR rose to $163.77 from $163.44 the prior week, a 2 percent year-over-year gain. RevPAR increased to $115.39 from $112.11, up 3.3 percent year over year.

Keep ReadingShow less
CoStar: US Hotel Metrics Rise Amid Slow YoY | Week-June 14

CoStar: U.S. hotel metrics up week of June 14, lags YOY

Occupancy Hits 68.6%, Still Down Year Over Year

U.S. HOTEL METRICS increased for the week ending June 14 but remained below year-ago levels, according to CoStar. Industry performance in May was also higher than the same month last year.

Occupancy rose to 68.6 percent for the week ending June 14, up from 67 percent the previous week but 2.4 percentage points lower year over year. ADR increased to $163.43 from $161.57, a 0.6 percent decline year over year. RevPAR rose to $112.11 from $108.23, down 1.8 percent year over year.

Keep ReadingShow less
U.S. hotel RevPAR and occupancy trend chart showing weekly gains but year-over-year decline, with St. Louis leading

CoStar: Early June hotel gains offset by YOY drop

What were the key hotel performance trends this week in the U.S.?

U.S. HOTEL PERFORMANCE rose for the week ending June 7 but remained lower year over year, according to CoStar. Occupancy, ADR and RevPAR increased week over week, with St. Louis recording the highest gains across all three metrics.

Occupancy increased to 67 percent for the week ending June 7, up from 61 percent the previous week but 3.2 percentage points lower year over year. ADR rose to $161.57 from $151.48 but was flat compared to the same week in 2024. RevPAR increased to $108.23 from $92.45, down 3.2 percent YoY.

Keep ReadingShow less
U.S. hotel occupancy and RevPAR decline, with St. Louis showing growth

CoStar: U.S. hotel metrics slide in final week of May

What were the U.S. hotel occupancy trends in late May 2025?

U.S. HOTEL METRICS declined for the week ending May 31, marking weekly and yearly lows, according to CoStar. St. Louis led the top 25 markets in year-over-year occupancy growth.

Occupancy fell to 61 percent for the week ending May 31, down from 67.5 percent the previous week and 1.6 percentage points lower year over year. ADR declined to $151.48 from $164.57, a 0.3 percent drop from the same week in 2024. RevPAR decreased to $92.45 from $111.02, down 1.9 percent year over year.

Keep ReadingShow less