Market Trends

🛑 Nov 13, 2025, U.S.: Hotel performance projections for 2025-2026 face a downgrade by STR and Tourism Economics due to static macroeconomics. 2025 occupancy is forecasted at 62.3%, below 2024's 63.1%. RevPAR is expected to decline by 0.4% in 2025. ADR growth remains low at 0.8%. 2026 occupancy could drop to 62%. Economic challenges like rising unemployment and tariffs are key factors, though 2026 might see optimism from income growth and international events.

📊 Arlington, Virginia—CoStar and Tourism Economics downgraded the 2025 U.S. hotel forecast. Occupancy decreased by 0.2 percentage points to 62.3%, ADR held at +0.8%, and RevPAR dropped by 0.3 percentage points to -0.4%. Adjustments for 2026 include occupancy down 0.3 percentage points, ADR down 0.1 points, and RevPAR down 0.3 points. Amanda Hite from STR cited rising unemployment and prices. Aran Ryan foresaw moderate U.S. travel economy improvement in 2026, aided by household income growth and global travel expansion.

📈 CoStar and Tourism Economics revised the U.S. hotel forecast for 2025, lowering occupancy by 0.2 points to 62.3% and downgrading RevPAR by 0.3 points to -0.4%. 2026 projections include a 0.3 point drop in occupancy, with ADR and RevPAR declining by 0.1 and 0.3 points, respectively. The macroeconomic environment may cause further performance downgrades due to rising unemployment and prices. However, by 2026, moderate travel economy improvement is anticipated, fueled by global travel and World Cup interest.

🏠 In 2026, global luxury travel spend is projected to rise over 6%. Key trends include a focus on privacy, community wellness, nostalgia-based itineraries, and narrative-driven hotel designs. U.S. sports tourism will boom with events like the World Cup and Olympics. Route 66 celebrates its centennial, sparking renewed interest in road trips. Digital platforms like TikTok increasingly influence travel decisions, while AI personalizes planning. Meghan Patke leads Modern Currency PR's insights, emphasizing empathy and cultural shifts in travel.

🏖 In Zanzibar, three entrepreneurs transformed ordinary motorboats into "Ferrari," "Porsche," and "Lamborghini" boats, creating an Instagram-friendly experience with drone shots, pivoting from competing in the same market to becoming the market. A budget alternative offers similar visuals at half the price with transparent boats. By adapting to market dynamics, like timing and storytelling, they attract tourists without pursuing them, emphasizing perception over price. Revenue management is about differentiation and creating irresistible experiences.

🏨 Chet Pipkin, founder of Belkin, shifted to hospitality with Desolation Hotel. He and his team focus on creating "aha moments" through thoughtful design, including EV chargers, Dyson hair dryers, stocked kitchenettes, and heated floors. The core of their approach is to remove friction, anticipate needs, and empower guests. If you're interested in enhancing guest experiences and learning about hospitality innovation, this content provides valuable insights on leading with authenticity and product thinking.

🎁 More than half of Americans cut holiday family visits short, revealed by Hilton and Morning Consult's survey of 2,200 adults on Nov. 4–5, 2025. It shows 63% of hosts feel exhausted, with 46% preferring guests stay elsewhere. Notably, 36% sleep on non-bed surfaces, and 38% need alone time within 24 hours. The survey's margin of error is +/- 2% for adults, +/- 5% for guests and hosts. Hilton, with 7,600 properties, continues hospitality innovation.

🏁 Singapore, October 2025: The Formula 1 Grand Prix drove record highs in the hotel industry. Occupancy hit 82.8%, up 6.5% year-over-year. The average daily rate (ADR) soared to SGD384.15, a 19.5% increase, while revenue per available room (RevPAR) climbed to SGD317.96, a 27.3% jump. On October 3rd, occupancy reached a peak of 95.9%, with ADR and RevPAR hitting SGD757.62 and SGD726.47 respectively, marking new all-time highs.

🏃‍♀️ The $6.3 trillion wellness economy is growing, with wellness tourism reaching over $830 billion and outpacing general tourism. Travelers often spend up to 175% more on wellness trips. The WELL Standard has certified 6 billion square feet for wellness. The article emphasizes the need for inclusive wellness initiatives targeting Gen X and integrating employee wellbeing. It also suggests exploring spiritual wellness and considering a Chief Wellness Officer role in hospitality.

📈 In the last 15 years, U.S. lodging demand shifted from corporate/group to leisure, with leisure now representing 55% of demand. Since 2020, corporate travel has plateaued at 90% of pre-2020 levels, with a 3% drop in 2025 compared to 2024. Group travel, after rebounding to 2019 levels by 2024, declined by 4% in 2025 through mid-September. Friday and Saturday now lead occupancy, reflecting leisure’s rise, while traditional business travel declines.