Skip to content

Search

Latest Stories

Report: RevPAR growth steady in Q1 amid uncertainty

New Orleans led RevPAR growth regionally, boosted by the Super Bowl

U.S. hotel industry RevPAR growth chart for Q1 2025, showing 2.2% increase driven by ADR and occupancy gains

The U.S. hotel industry saw 2.2 percent year-over-year RevPAR growth in the first quarter, despite economic uncertainty, according to CBRE.

U.S. Hotel Industry RevPAR Growth in Q1 2025

THE U.S. HOTEL industry recorded year-over-year RevPAR growth in the first quarter, despite economic uncertainty and rising competition from alternative accommodations, according to CBRE. While remaining mostly positive, experts said the hospitality industry’s forecast could take a turn for the worse depending on external politics.

RevPAR increased 2.2 percent from the first quarter of 2024, driven by a 1.9 percent rise in ADR and a 0.4 percent increase in occupancy.


Regionally, New Orleans led RevPAR growth, boosted by the Super Bowl, followed by Tampa, Florida, which benefited from hurricane relief efforts, the report said. Columbus, Ohio; Washington, D.C.; and West Palm Beach, Florida, also ranked among the top five RevPAR growth markets, likely driven by travel tied to the presidential inauguration. Eight of the top 10 RevPAR growth markets posted double-digit increases, with four located in the South.

Business travel in March gained from Easter falling in the second quarter, but that momentum was tempered by an 11.6 percent year-over-year decline in inbound international travelers, CBRE said.

Hotel demand grew 1 percent in the first quarter, outpacing a 0.6 percent increase in room supply. However, demand for lodging alternatives—especially short-term rentals and cruise lines—grew faster, up 45 percent and 9 percent, respectively, from first-quarter 2019 levels.

Occupancy rates across all hotel location types continued to lag pre-pandemic levels. Urban hotels reached 92 percent of 2019 occupancy, and interstate properties neared full recovery at 99.5 percent. Resorts were the only segment to post a year-over-year decline.

Labor pressures eased during the quarter, the report said. Job openings per hotel fell nearly 9 percent, from 17 to 15, while average hourly hotel wages rose 4 percent year over year—matching the national growth rate but still nearly $11 below the U.S. average.

While the quarter closed on a positive note, analysts caution that geopolitical developments, including trade and travel policies, could challenge hotel pricing power and international demand in the months ahead.

In February, CBRE forecasted steady U.S. RevPAR growth in 2025, driven by stronger group and business travel in urban markets and a recovery in inbound international travel. The firm expects a 2 percent increase, with occupancy up 23 basis points and ADR rising 1.6 percent.


More for you

American Franchise Act announced in U.S. Congress to protect hotel franchising and jobs

House unveils act to boost franchise business

Summary:

  • House introduces AFA to boost franchise model and hotel operations.
  • The act establishes a joint employer standard.
  • AHLA backs the bill, urging swift adoption.

THE HOUSE Of Representatives introduced the American Franchise Act, aimed at supporting the U.S. franchising sector, including 36,000 franchised hotels and 3 million workers nationwide. The American Hotel & Lodging Association, backed the bill, urging swift adoption to boost the franchise model and clarify joint employer standards.

Keep ReadingShow less
AHLA Foundation expands hospitality education

AHLA Foundation expands hospitality education

Summary:

  • AHLA Foundation is partnering with ICHRIE and ACPHA to support hospitality education.
  • The collaborations align academic programs with industry workforce needs.
  • It will provide data, faculty development, and student engagement opportunities.

THE AHLA FOUNDATION, International Council on Hotel, Restaurant and Institutional Education and the Accreditation Commission for Programs in Hospitality Administration work to expand education opportunities for students pursuing hospitality careers. The alliances aim to provide data, faculty development and student engagement opportunities.

Keep ReadingShow less
Report: Global RevPAR to rise 3–5 percent in 2025

Report: Global RevPAR to rise 3–5 percent in 2025

Summary:

  • Global hotel RevPAR is projected to grow 3 to 5 percent in 2025, JLL reports.
  • Hotel RevPAR rose 4 percent in 2024, with demand at 4.8 billion room nights.
  • London, New York and Tokyo are expected to lead investor interest in 2025.

GLOBAL HOTEL REVPAR is projected to grow 3 to 5 percent in 2025, with investment volume up 15 to 25 percent, driven by loan maturities, deferred capital spending and private equity fund expirations, according to JLL. Leisure travel is expected to decline as consumer savings tighten, while group, corporate and international travel increase, supporting RevPAR growth.

Keep ReadingShow less
Hotel data challenges report highlighting AI and automation opportunities in hospitality

Survey: Data gaps hinder hotel growth

Summary:

  • Fragmented systems, poor integration limit hotels’ data access, according to a survey.
  • Most hotel professionals use data daily but struggle to access it for revenue and operations.
  • AI and automation could provide dynamic pricing, personalization and efficiency.

FRAGMENTED SYSTEMS, INACCURATE information and limited integration remain barriers to hotels seeking better data access to improve guest experiences and revenue, according to a newly released survey. Although most hotel professionals use data daily, the survey found 49 percent struggle to access what they need for revenue and operational decisions.

Keep ReadingShow less
Hyatt Way partnership

Hyatt taps Way for unified guest platform

Summary:

  • Hyatt partners with Way to unify guest experiences on one platform.
  • Members can earn and redeem points on experiences booked through Hyatt websites.
  • Way’s technology supports translation, payments and data insights for Hyatt.

HYATT HOTELS CORP. is working with Austin-based startup Way to consolidate ancillary services, loyalty experiences and on-property programming on one platform across its global portfolio. The collaboration integrates Way’s system into Hyatt.com, the World of Hyatt app, property websites and FIND Experiences to create a centralized booking platform.

Keep ReadingShow less