Market Trends

🏨 In 2025, Spanish hotel activity stabilizes after dynamic growth from 2022-2024. Hotel overnight stays remain historically high, driven by international tourism from the UK, Germany, France, and the US. Domestic tourism shows moderate growth due to inflation and price sensitivity. RevPAR growth is limited, relying on occupancy. Urban areas and MICE events perform well, while some leisure markets stabilize. Cost pressures, including labor and energy, impact profitability, necessitating operational efficiency.

🏨 February 22-28, 2026, U.S. hotel performance showed nearly flat year-over-year changes: occupancy at 62.8%, ADR at $159.03, and RevPAR at $99.85. New Orleans experienced significant declines with ADR dropping 32.6% to $160.58, and RevPAR falling 33.7% to $100.14. New York City's occupancy decreased by 12.6%, while Las Vegas saw a 12% occupancy drop, ADR down 26.9%, and RevPAR down 35.7%. San Francisco reported gains with occupancy up 20.3% and RevPAR up 35.3%.

🗺 Gen Z and millennials prioritize diverse travel experiences over brand loyalty, yet value loyalty programs with flexibility. Phocuswright’s study reveals Gen Z and millennials have higher redemption rates in loyalty schemes than older generations. Two-thirds of millennials redeem travel through credit card points, while both groups favor OTA programs for variety. As their spending power grows, travel providers must enhance program versatility to engage these younger travelers. Statistical insights are part of Phocuswright’s "Travel Loyalty in 2026" series.

🏨 European hotels, 2025: Faced with stagnating margins despite revenue growth. Eastern Europe leads with TRevPAR up 6.5% and GOPPAR up 10.4%. Western Europe struggles with GOPPAR at 0.2%. GOP margins at 36.5%, showing no expansion. Labor costs are up 5% year-on-year. Wellness income grows by 4.7% to €10–€11 per room. Credit card commissions rise to €3 per room. Operational discipline, not demand growth, is crucial for future profitability.

🏨 EMEA's hotel market saw a strong performance with rising costs reported. In the first half of 2023, the market experienced growth due to increased travel demand. However, operational costs surged, impacting profits. Notably, occupancy rates rose by 5% year-on-year, reaching 75%. Revenue per available room (RevPAR) increased by 10%, but labor costs escalated by 12%, challenging profitability. These trends highlight the balance between harnessing demand and managing expenses in the hospitality sector.

📅 SiteMinder's 2025 Hotel Booking Trends report indicates a 1.35% rise in UK average daily rates to £191.55. Fridays averaged £215, the highest rate. July and August saw ADR increases of 2.4% and 1.7%, respectively. 81% of UK bookings were for one night, higher than the global 73%. UK domestic bookings were 70% of arrivals. G2 Travel joined the Top 12 booking channels. Agoda and TBOHolidays highlight growing Asian travel. Booking.com and Expedia lead with unchanged direct booking positions.

🏗️ Architecture and design firm Baranowitz + Kronenberg, 2025, Canary Wharf, London: The Cube, originally aired in 2009, transformed into a 27,000-square-foot immersive venue. Located in a mixed-use building, it features 21 cubes and 7 bars, lounges, and a restaurant over two floors. The design highlights vertical connections and movement, balancing industrial and modern elements such as concrete and LCD technology. Alon Baranowitz emphasizes translating the TV show's emotional experience into tangible architecture.

📅 London, 2025: London's luxury hotel market faces profitability challenges despite 82% occupancy recovery. RevPAR dropped by 2.5%, and luxury ADR fell over 7% in Q2 2025. The market sees a wave of new openings with 757 rooms, pushing high-end room numbers to approximately 21,000. In 2024, 17 million visitors arrived, but the end of VAT-free shopping and global competition impact spending. Five-star travellers contribute £30bn annually, highlighting the sector's economic significance.