Market Trends

🏨 In January 2025, U.S. hotel occupancy reached 52.5% with a 1% increase from January 2024. Average Daily Rate (ADR) was $151.20, showing a 3.4% increase; Revenue per Available Room (RevPAR) rose to $79.42, up 4.5%. Influences on these figures included Hurricanes Helene and Milton, the L.A. wildfires, and the inauguration. Tampa led the Top 25 Markets with a 17.6% increase in occupancy to 79.9%, while St. Louis and Minneapolis saw the lowest occupancy rates at 42.9% and 43.1%, respectively. The Top 25 Markets outperformed others in occupancy and ADR.

🏨 In January 2025, the European hotel market saw varied performance; Southern and Eastern Europe recorded growth with Spain (+8.5%), Italy (+6.3%), Portugal (+6.8%), Latvia (+33.5%), Hungary (+19.8%), Poland (+13.9%), and the Czech Republic (+12.3%) all reporting increases in RevPAR. This was attributed to stable occupancy and higher Average Daily Rates (ADR), contrasting with markets like Germany which experienced a downturn.

🏨 Hilton inaugurated Spark by Hilton Sindelfingen in Germany on February 20, 2025, adding 103 rooms to its portfolio. Located near the Mercedes-Benz plant and Sindelfingen's historic center, the hotel caters to both business and leisure guests. It features functional guest rooms, shared tables, a lounge, complimentary breakfast, a 24-hour market, a multi-purpose gym, on-site parking, and participation in the Hilton Honors program. The expansion underscores Hilton's commitment to affordable, comfortable stays in Europe.

🏨 In a podcast episode released on February 25, 2025, Matthias Huettebraeuker interviews Hans Meyer, co-founder and managing director of Zoku. They discussed the transformation of hotel rooms, with Zoku leading the change in the hospitality industry.

📈 Direct bookings offer hotels lower acquisition costs, higher revenue, longer stays, and fewer cancellations, according to a D-Edge report dated February 25, 2025. The Europe and APAC data-driven study focuses on digital marketing strategies for hotels to enhance profitability by reducing reliance on third-party channels. The report covers the impact of Google’s advertising dominance, changes in search advertising, and effects of the Digital Markets Act on hotel search visibility. Strategies to manage rising distribution costs and digital growth opportunities are also discussed. Download available at D-Edge’s website.

🍺 Shiko Group, a North West bar and kitchen operator, projects a turnover of £9.2m for the current year and £14m for 2025/26 after acquiring The Lawn Club in Manchester in 2017. Starting with a £300,000 turnover in 2019, the Group now boasts eight venues across Manchester and Leeds, with plans for expansion in Manchester and beyond. Anthony Ellis, co-founder, credits the success to unique venues and the team's hard work.

🏨 Top-performing hotels using D-EDGE's strategies average a 3.5% direct distribution cost, significantly lower than the 12–28% OTA charges. The report underscores the importance of direct bookings for lower costs, higher revenue, longer stays, and fewer cancellations, advising hotels to focus on digital marketing to boost profitability and cut dependency on expensive channels.

🏨 U.S. hotel RevPAR is forecast to increase by 2% year-over-year in 2025 with urban hotels expecting a stronger rise of 2.8%. Occupancy rates will edge up by 0.23 percentage points, and ADR will climb 1.6% year-over-year. Business travel and international arrivals, along with limited new hotel supply, are key market drivers. The economic outlook anticipates a 2.4% GDP growth and 2.5% inflation rate. CBRE's long-term projection is a 1.5% to 3.5% annual RevPAR growth, aligning closely with STR's forecast of 1.8% RevPAR and 1.6% ADR growth for the same year. Risks include tariffs, labor shortages, and Federal Reserve policies.

🏠 U.S. travel industry in 2025 sees a 5% increase in air ticket sales, reaching $9.3 billion in January. Passenger trips rise by 4% to 26.7 million, with domestic trips growing 3% and international 6%. The average ticket price in January is $557, with premium class tickets at their lowest in over three years at $1,224. Industry optimism is high due to sustained demand for business and leisure travel.