Moderate growth ahead as travel patterns, tariffs, and alternative lodging reshape performance across regions
Oct 6, 2025
CBRE has adjusted its global hotel forecast for 2025, signaling slower RevPAR growth in key markets such as the U.S. and Europe, while regions like Latin America and parts of Asia continue to show strong momentum. The revised outlook reflects a patchwork recovery shaped by shifting travel trends, economic policies, and rising competition from short-term rentals.
Key takeaways
- U.S. slowdown: RevPAR growth for 2025 has been revised down to 0.1% from 1.8%, affected by softer seasonal events, higher tariffs, and more competition from alternative lodging.
- Canada stability: The market remains resilient, with a projected 2.4% RevPAR increase driven by domestic travel and cross-border demand.
- Latin America momentum: Countries such as Mexico, Costa Rica, Colombia, and the Dominican Republic continue to post strong tourism growth through 2025.
- Europe moderates: RevPAR growth is expected to range from 2% to 5%, with gains tied to cautious rate management and steady international arrivals.
- Asia-Pacific acceleration: Japan, Korea, Vietnam, and India lead regional performance, supported by a 9% rise in international arrivals.
- Middle East strength: The UAE and Saudi Arabia sustain solid RevPAR growth, buoyed by exhibitions, new attractions, and robust domestic demand.
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