Market Trends

🏨 Lenders, branding agencies, interior designers, and contractors are pivotal for hotel projects. Lenders provide funding, often through SBA, seller financing, or bridge lending. Branding agencies craft the property's identity, while interior designers ensure every element reflects this. Contractors manage cost and timelines, crucial for seasonal markets. Lessons from past projects highlight the importance of the right partners in creating successful, proud-worthy hotels. Skipping crucial partners initially led to learning experiences and avoiding repeat mistakes.

📈 According to McKinsey, Q2 2025 saw strong economic activity in parts of Southeast Asia. Vietnam excelled, with a +15.4% increase in GOPPAR. Tokyo's RevPAR and GOPPAR grew by +17.4% and +18.3% respectively, while Singapore and Jakarta faced declines. Chinese tourism surged due to relaxed visa rules. India remained a fast-growing economy, and Australia projected 10 million tourist arrivals by 2026. Transaction hotspots included Hong Kong, Singapore, and South Korea, focusing on single asset deals.

🛌 Hotels are leveraging sleep science to combat the First Night Effect (FNE), a phenomenon causing poor sleep in new environments. Despite operational challenges, they can boost guest satisfaction by assigning guests to the same room on return visits, exploiting CRM data and booking systems. This low-cost strategy enhances sleep quality, loyalty, and revenue. With an average length of stay around 1.2 nights, familiar settings reduce perceived danger, improving rest and differentiating wellness-focused properties.

📈 SAN DIEGO, California—From January to July 2025, Cloudbeds and Duetto analyzed hotel data globally. OTAs, led by Expedia with a 12% increase, gained market share, causing shifts in room night volumes. Pricing power softened, with Vrbo and Airbnb seeing rate declines. TRevPAR rose in Latin America by 4.6%, North America by 3.5%, and Europe by 2.5%. Labor costs surged by 4.6% in North America, hitting 47% of total operating costs. Shorter stays became frequent due to tighter budgets.

📈 For 2025, U.S. RevPAR is projected to decline by -0.4%, marking the first annual drop since 2020. Data from CoStar and Tourism Economics also forecast a similar downturn for 2026. Amanda Hite of STR cites rising unemployment and prices as contributing factors. The hotel market shows a K-shaped recovery, with luxury hotels thriving while midscale properties struggle. Hoteliers are advised to focus on specific market trends, cost control, and precise data analysis to navigate these challenges.

🏨 Watergate Bay Hotel, based on the North Cornwall coast, won the Gold Cornwall Tourism Award for large hotel of the year and the Winner of Winners title on 13 November 2025. The hotel will represent Cornwall at the 2026 Visit England Awards. Recent expansions include appointing a new executive head chef, COO, and GM. The hotel will open Cornwall’s first beachside real ice rink on 17 November. Key partnerships include Land Rover Discovery.

📈 Duetto and Cloudbeds released the first Hotel Market Pulse report analyzing global hotel performance from January 1 to July 31, 2025, compared to 2024. Expedia's room night volume increased by nearly 12%, while OTA gains from Trip.com, Hotelbeds, and Despegar exceeded 35%. Global average daily rates dropped: 10% on Vrbo and 5% on Hotelbeds. TRevPAR increased: Latin America (+4.6%), North America (+3.5%), and Europe (+2.5%). Labor costs rose by 4.6% in North America and 3.9% in Europe.

🎁 More than a third, or 37%, of UK residents plan to travel domestically to visit family and friends this Christmas, according to a survey of 45,000 by Travelodge. Only 4% will go overseas. Among these, 14% will sleep on sofas or floors. The survey also reveals 49% prefer regional Christmas markets, with Bath leading the list. Traditional meals remain popular: 65% will have turkey. Casual outfits dominate, with 45% opting for comfort.

📅 11 November, France: The bank holiday weekend diverged from the previous All Saints' holidays, with most regions experiencing a downturn despite the favorable weather. The French Riviera thrived, buoyed by the luxury sector and international visitors, whereas northern and western cities faced notable decreases. This analysis, based on MKG data, highlights how the weekend's performance challenges markets' adaptability to fluctuating demand.