Market Trends

🏄 2025 will see North America lead surf park development, with projects like Virginia Beach’s $350 million Atlantic Park and Palm Desert’s DSRT Surf. The U.S. surfing market is growing at 8% annually, with 4.23 million participants in 2024. Pricing for surf park sessions globally averages $129. Notably, a failed $60 million project in Gilbert, Arizona highlights execution risks. These parks are complex investments with high operational costs, demanding precise market analysis.

🌎 International tourism grew by 0.4% in the first half of 2026, with 690 million tourists traveling globally despite Middle East conflicts and inflation. Arrivals increased by 2% in Q1 but fell 1% in Q2, with a notable 3% decline in April. June saw a 3% global drop, including a 6% decrease in Western Europe due to heatwaves. Asia and the Pacific saw 1% growth, but the Middle East experienced a significant 22% drop. Global growth is projected at 1-2% for 2026.

💸 In the first half of 2026, the U.S. hospitality market saw a renewed yet uneven momentum after a nearly flat 2025. Hilton's RevPAR grew 4.7% in the U.S., Hyatt saw a 5.7% system-wide increase, IHG recorded a 4.8% growth in the Americas, and Marriott's luxury properties noted a 7.9% rise. Experience-driven brands like LXR Hotels and The Unbound Collection excelled, highlighting a widening divide between luxury and economy segments.

📈 UK hotels' utility costs per occupied room rose from £8.45 to £9.15, and from £8.91 to £10.10 in London, between July 2025 and July 2026. Average daily rates (ADR) increased by 4% in both the UK and London, with UK ADR rising from £176.29 to £182.47, and London's from £264.34 to £274.40. Revenue per available room (RevPAR) in the UK also saw an increase, from £152.55 to £155.89.

📈 Luxury hotels in the U.S. saw RevPAR rise by 13.3% in H1 2026, driven by events like the FIFA World Cup, while economy hotels faced declines. The U.S. had a 69.6% occupancy rate, and ADR at $173.76. Hilton's LXR Hotels grew 12.9% in RevPAR, and Hyatt saw 5.7% system-wide growth. IHG's Atwell Suites led with 22.7%, and Marriott's W Hotels posted a 10.8% increase, with The Ritz-Carlton's ADR at $609.82.

🏟 Sports tourism, accounting for 10% of global tourism spending, was valued at £419bn in 2023 and is projected to reach £974bn by 2032. Major sporting events like the FIFA World Cup and the Olympics have diverse impacts on hotel demand, requiring strategic pricing and planning. Recurring events such as Wimbledon and Premier League matches offer stable returns. Hotels enhance guest experiences by integrating sports themes and utilising data-driven strategies to attract international sports tourists, who contribute significantly to local economies.

🛸 Josiah Mackenzie, founder of Hospitality Daily, shares insights from a coast-to-coast U.S. road trip during the summer. He highlights the reliability of limited-service hotels, evo Hotel's integration of hospitality in Salt Lake City, and opportunities for hotels at EV charging stops. A disrupted evening with his dad emphasized the importance of guest experiences. Listen to his reflections on the Hospitality Daily Podcast, available on Spotify, Apple Podcasts, and more.

🏨 Hospitality and leisure businesses in the UK faced a 17.5% rise in critical financial distress in Q2 2026, totaling 4,481 businesses. Leisure and cultural activities saw a 27.1% increase, while hotels and accommodation rose by 26.6%. Licensed restaurants in significant distress reached 6,645, with public houses and bars at 5,438. Nationwide, businesses in distress increased 1% to 674,030. Job risks loom for 7,600 employees across 1,382 troubled businesses. Policy changes and rising costs continue to strain the sector.

🏕 Melbourne, Australia – 16 September 2026: RMS released its 2026 State of the Outdoor Accommodation Report. 66% of 1,500 surveyed campers plan to camp more next year, with online searches surpassing word-of-mouth at 64% for discovering sites. 85% prefer booking exact sites online, while AI aids 14% in trip planning. 88% prioritize sustainability. 67% notice campground tech upgrades, and 40% expect system updates. The report highlights the growing digital shift in camping experiences.

🏨 In the past two years, over 3 million sq ft of office space in London has been slated for hotel conversion, reflecting rising demand for unique accommodations. Last year, over 90% of luxury travelers sought historical immersion. Notable transformations include Hôtel-Dieu Lyon and Bodmin Jail Hotel, Cornwall. Heritage designs, such as a 19th-century mansion in Marseille and a 1930s Berlin building, are gaining traction for their sustainable, heritage-rich appeal in the hospitality sector.