Market Trends

🏨 DALLAS, Texas—In 2025, 77% of U.S. hotel arrivals were domestic, up from 73.78%. Direct hotel bookings ranked third in the U.S., with Agoda and Trip.com in the Top 12. Cancellations dropped to 18.78%, with lead times averaging 30.57 days. The U.S. had one of the longest stays at 1.61 nights. ADR fell by 2.89% to $247.03. July was the priciest month at $269.08, while January was the cheapest at $217.15.

📈 MGM Resorts International reported Q4 2025 results with a 6% revenue increase to $4.6 billion and net income up to $294 million. Las Vegas revenues fell 3% to $2.2 billion, while MGM China saw a 21% rise to $1.2 billion. Full-year revenues reached $17.5 billion, up 2% from 2024, despite a drop in net income from $747 million to $206 million. Key initiatives included $135 million from BetMGM and $1.2 billion in share repurchases.

📈 JLL's 2025 U.S. Hotel Investment Report shows a 17.5% increase in transaction volume, reaching $24 billion. New York led with $3.7 billion, followed by Phoenix and Washington, D.C. Interest rates fell by nearly 300 basis points since September 2024, boosting borrowing and investments. Luxury hotels saw a 3% RevPAR rise, while midscale/economy segments declined. World Cup host cities in 2026 could see significant RevPAR growth. Limited new hotel supply further supports investment optimism.

💸 Summer 2025 observed a shift in spending: domestic middle classes focus on entry-level/alternative options, while international and affluent visitors invest in luxury experiences. Maud Bailly repositioned Sofitel for its 60th anniversary, enhancing its French excellence narrative. The luxury hospitality sector is urged to prioritize exclusivity and value over volume to maintain brand allure. Affluent clients post-COVID value brand premiums only if perceived as fair and substantiated, emphasizing a disciplined approach to experiential hospitality.

🛠 A weekend getaway leads to unexpected intimacy due to a hotel's design choices. The toilet space, located close to the bed, features a thin glass panel with frosting that does not cover the entire surface. This design allows the user’s form to be visible, especially their feet, due to the panel's lack of frosted coverage at the bottom, creating potential audio and visual privacy concerns.

🌳 Nature-based stays, including eco-lodges and farm retreats, are thriving. The market is set to grow from $15.5 billion in 2025 to $28.9 billion by 2032. Envi Lodges plans over 60 villas in Saudi Arabia and Africa by 2026. Travelers seek immersive outdoor experiences and local food sourcing. GCSTIMES, founded in 2011, innovates in sustainable solutions, with operations in China, the US, UAE, France, and Australia, reaching over 140 countries and aiding 100,000 hospitality groups.

🏨 In 1992, the author attempted to book personalized experiences in Shanghai, Beijing, and Xi’an but succeeded only in visiting a Go school for children. The hospitality industry now thrives on personalized experiences, driven by market changes, brand commoditization, and revenue potential. Example offerings: Mandarin Oriental Hyde Park in London’s private Harrods shopping, exclusive Burj Khalifa tours by The Ritz-Carlton Dubai, and sapling planting at LUX* Resorts Mauritius. A seven-part formula for memorable hotel experiences includes novelty, quality, and personalization.

📅 February 2026, Denver: Engine launches Engine Spaces, integrating workspace booking with travel services. The platform, featuring over 40,000 meeting spaces in the U.S., partners with Choice Hotels. Engine's December 2025 poll reveals 82% of hotel meeting spaces are underutilized, booked less than half the time. Engine Spaces aims to simplify booking, offering centralized listings and direct inquiries. Choice Hotels, with 7,500 locations, supports the initiative to enhance visibility and connectivity in business travel.

🏒 Milan is seeing hotel occupancy rates peak at 85.2% for the Winter Olympics, particularly on 11 February. The opening ceremony on 6 February shows 82.9% occupancy, while the closing ceremony on 20 February dips to 71.4%. February's average occupancy is forecasted at 77.9%, potentially the highest on record, with ADR up 48.1% year-over-year. Milan’s limited hotel supply, improved transport, and international gateway status contribute to these figures, amid the upcoming Olympics and Milan Fashion Week.

🏠 In 2026, hospitality brands are shifting focus from location to branding, memory, and identity. Examples include Reschio in Umbria, Aman Resorts, and Soho House & Co. Reschio offers a unique narrative experience despite its remote setting. Aman emphasizes calmness and an emotionally distant experience, making the brand experience portable. Soho House prioritizes belonging and culture over iconic locations. Brands relying solely on location may struggle to differentiate themselves in the future.