Skip to content

Search

Latest Stories

AHLA: Costs rising, growth continuing in 2025

Hotels may add 14,000 jobs this year, reaching 2.17 million workers

U.S. hotels navigate rising costs in 2024 while leveraging guest spending trends and technology for growth – AHLA 2025 Industry Report insights
Hotels struggled in 2024 as costs outpaced revenue, slowing economic growth and job creation, but opportunities remain through guest spending trends, traveler shifts and major events, according to the American Hotel & Lodging Association’s 2025 State of the Industry report.

Rising Costs Challenge Hotels in 2024, But Growth Opportunities Remain

HOTELS STRUGGLED WITH rising costs outpacing revenue growth in 2024, hindering economic growth and job creation, according to American Hotel & Lodging Association’s 2025 State of the Industry report. Despite these challenges, opportunities remain, driven by guest spending trends, shifting traveler behaviors, and major upcoming events.

The report, published with Accenture, found property costs outpacing revenue, with operations, maintenance, sales, marketing, and IT expenses rising nearly 5 percent in 2024, adding to hotel industry challenges.


“America’s small business hotel owners have been struggling as rising costs, compounded by high inflation and interest rates, make it difficult to stay open and serve guests,” said Rosanna Maietta, AHLA's president and CEO. “That’s why we will be focused on promoting policies that help our members overcome these challenges so they can focus on what they do best—creating pathways for their employees to find lasting careers and creating unforgettable experiences for their guests.”

Findings from the 2025 report include:

  • Employee compensation: Hotels are projected to pay a record $128.47 billion in wages and benefits in 2025, up from $125.79 billion in 2024.
  • Job growth: Hotels are expected to add 14,000 employees in 2025, reaching 2.17 million workers, still 200,000 short of the 2019 pre-pandemic level.
  • Community impact: Hotels are projected to generate a record $55.46 billion in state and local tax revenue in 2025, up from $53.97 billion in 2024, including $26.82 billion in lodging-specific taxes.
  • Federal tax revenue: Hotels are also expected to generate a record $30.14 billion in federal tax revenue, up from $29.55 billion in 2024.
  • Guest spending: Nominal hotel guest spending across lodging, transportation, food and beverage, retail, and other expenses is expected to reach $777.25 billion in 2025, a 4 percent increase from $747.17 billion in 2024.

Liselotte De Maar, Accenture’s managing director of global strategy for travel, said hoteliers will capitalize on growing travel demand and new revenue opportunities in live sports and entertainment.

“There is a balance to strike in delivering on customer expectations and keeping a careful watch on the bottom line,” she said. “Leveraging data and embedding technologies such as artificial intelligence can boost personalization of experiences across rising new customer segments, along with agility and cost-effectiveness. Done well, this can lead to increased loyalty, strengthened relationships and new growth opportunities.”

The report also highlighted emerging travel trends that could drive revenue and growth, including:

  • Shifting demographics create opportunities to serve multiple generations and expand offerings for aging and solo travelers.
  • Hoteliers are generating new revenue through camping accommodations, entertainment-focused stays, and loyalty program partnerships.
  • Growing sports and entertainment tourism is driving demand for travel and accommodations for attendees and staff.
  • Technology and AI are enhancing personalized travel experiences for trip planning and bookings.

The AHLA Foundation recently raised more than $1 million at its Night of a Thousand Stars gala to support hotel workforce development.

More for you

U.S. Hotel Construction Hits 20-Quarter Low in June

CoStar: Hotel construction drops in June

Summary:

  • U.S. hotel rooms under construction fell year over year for the sixth straight month in June, hitting a 20-quarter low, CoStar reported.
  • About 138,922 rooms were under construction, down 11.9 percent from June 2024; the luxury segment had 6,443 rooms, up 4.1 percent year over year.
  • Lodging Econometrics recently said Dallas led all U.S. markets in hotel construction pipelines at the end of the first quarter, with 203 projects and 24,496 rooms.

THE NUMBER OF U.S. hotel rooms under construction declined year over year for the sixth straight month in June, reaching a 20-quarter low, according to CoStar. Additionally, more than half of all rooms under development are in the South, mostly outside the top 25 markets.

Keep ReadingShow less
Chart showing decline in U.S. extended-stay hotel occupancy and RevPAR in May 2025

Report: May fifth month for drop in extended-stay occupancy

Summary:

  • Extended-stay occupancy fell 2.2 percent in May, the fifth straight monthly decline; ADR and RevPAR also dropped for a second consecutive month.
  • May marked 44 straight months of supply growth for the segment at 4 percent or less, with annual growth below the 4.9 percent long-term average.
  • Extended-stay room revenues rose 0.5 percent, while total industry revenue grew 0.9 percent, led by segments with little extended-stay supply.

EXTENDED-STAY HOTEL occupancy fell 2.2 percent in May, the fifth consecutive monthly decline, exceeding the 0.7 percent drop reported for all hotels by STR/CoStar, according to The Highland Group. Extended-stay occupancy was 10.5 percentage points above the total hotel industry, at the lower end of the long-term average premium range.

Keep ReadingShow less
Auro Hotels Showcases India Culture at TCMU Exhibit

Auro unveils 'India Cultural Corner' for children

Summary:

  • Auro Hotels opened the India Cultural Corner, where children can check in and explore Indian culture at The Children's Museum of the Upstate.
  • Families can engage with community art, activities and storytelling about daily life in India.
  • The exhibit runs through May 2026, offering interactive learning on Indian culture.

AURO HOTELS RECENTLY opened the India Cultural Corner at The Children's Museum of the Upstate in Greenville, South Carolina, offering a look into Indian stories for American families. The exhibition, held at The Grand Geo Hotel and running through May 2026, includes a hotel desk where children can check in and explore Indian culture through interactive activities.

Keep ReadingShow less
U.S. Firms Lose $2.4 Trillion by Skimping on Business Travel

Report: Business travel gaps cost U.S. firms $2.4T

Summary:

  • U.S. companies risk losing more than $2.4 trillion in sales due to underinvestment in business travel, says GBTA.
  • An 8.3 percent T&E increase could drive a 6 percent sales gain, despite post-COVID virtual meeting tools.
  • Current T&E spending is $294 billion—$24 billion short of the $319.1 billion needed for peak profitability.

U.S. COMPANIES ARE missing more than $2.4 trillion in potential sales due to underinvestment in business travel, according to a Global Business Travel Association report. Despite a post-pandemic rebound, travel and entertainment spending remains $66 billion below 2019 levels.

Keep ReadingShow less
AI threats in hospitality

Study: Cyberattacks on hotels to surge

Summary:

  • Around 66 percent of hotel IT and security executives expect more cyberattacks this summer, and 50 percent anticipate greater severity, according to VikingCloud.
  • Guest-facing systems most at risk include POS and payment technology at 72 percent, guest WiFi at 56 percent and front desk systems at 34 percent.
  • About 48 percent of executives lack confidence in their staff’s ability to detect and respond to AI-driven attacks and deepfakes.

APPROXIMATELY 66 PERCENT of hotel IT and security executives expect an increase in cyberattack frequency and 50 percent anticipate greater severity during the summer travel season, according to cybersecurity firm VikingCloud. In summer 2024, 82 percent of North American hotels experienced a cyberattack and 58 percent were targeted five or more times.

Keep ReadingShow less