Market Trends

📊 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.

🏨 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.

🏃‍♀️ 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.

💹 Chicago, IL, 11 November — A PriceLabs study found that 63% of short-term rental hosts work full-time jobs while managing listings. The survey, involving over 1,400 hosts, revealed 71% spend under 10 hours weekly on management, with 37% spending five hours or less. Despite initial motives of earning extra (56%) or covering property costs (49%), 49% now aim to expand, and 22% consider full-time hosting. The full report releases on November 18.

🏨 In Great Britain, five of the 10 best-known hotel brands saw a decline in awareness from 2017 to 2023, according to the Hotel Guest Survey. Awareness varies by age, with Baby Boomers at 64% and Gen Z at 43%. In some cases, Gen Z brand awareness reaches as low as 19%. Only 30% of Brits think hotels offer the best rates directly, with 54% preferring other booking sites. The focus should shift to converting awareness into consumer preference.

🏨 UK hotel occupancy surged to 85% in September 2025, spurred by England's Red Roses performing in the Women's Rugby World Cup. London saw occupancy rise to 87.2%, with room rates increasing from £157.76 to £164.61 UK-wide and £220.14 to £232.48 in London. Gross operating profits climbed from 41% to 41.8% in the UK. Despite pressures like rising costs, the hotel sector offset weaknesses in manufacturing and construction, as noted by RSM UK's Chris Tate and economist Thomas Pugh.

📈 Skift and Mews's 2025 report in New York highlights a shift in hospitality from room-focused metrics to guest-centric ones like Revenue per Available Guest (RevPAG). Ennismore generates over 60% of revenue from non-room sources. Mews platform saw a rise in non-room bookings from 1,179 to 2,223 hotels between 2024 and 2025, with reservations increasing over 230%. Technology, such as AI tools, enables tailored services, enhancing guest experiences and boosting long-term growth.

📱 Grand Hyatt Singapore's in-room dining underwent a major digital transformation with Stellaris Digital Dine, improving efficiency by routing 90%+ of orders digitally. This shift has saved approximately $3,600 in monthly labor costs and nearly eliminated errors, reducing mistakes from 5-10% to near zero. Menu updates now take 2-3 hours instead of three weeks, with 58% of dining revenue (July 2024–June 2025) from digital orders. The initiative supports sustainability by eliminating printed menus.