Market Trends

📈 Cap rates fell 9 basis points in H1 2025, per CBRE's CRS survey, with 200+ real estate professionals' input. Treasury yields were volatile, peaking at 4.8% in January, dropping to 4.2% by June. Tariffs announced April 2 affected CRE sales volume outlook; 16% of respondents expect it to be significantly lower. Cap rates have likely peaked, with respondents favoring the multifamily sector over industrial, retail, hotel, and office.

🏨 The Lodging Conference, held annually at the JW Marriott Desert Ridge in Phoenix, focuses on hotel industry trends. The industry is shifting from asset ownership and operations to specializing in franchising. JLL reports a 4.6 percentage point increase in global franchised hotels in the past 18 months, indicating a trend towards professionalization and growth of third-party management companies like Aimbridge. The change highlights a move from diverse operations to a singular, focused strategy.

🛫 Aug 25, 2025, Asia Pacific travel trends: Travelers are planning 52 days ahead for multi-day stays, focusing on cultural connections and personal enrichment. Hotel bookings increased by 23% in Q1 2025, while air bookings decreased by 11%. AI tools are revolutionizing travel planning and bookings. Brands like Costa Cruzeiros and ITAKA show AI-powered campaigns can achieve up to 5X ROI. To adapt, brands should use structured, real-time data and strategies like dynamic retargeting.

🏖 Based on 2024 surveys from the U.S., U.K., France, and Germany, Phocuswright's 2025 report analyzes travel destination choices. It examines how U.S. and European preferences differ, the impact of digital tools across ages and regions, and motivations like price, scenery, and rest. It identifies traveler segments seeking new versus familiar places. Phocuswright offers unlimited access to travel research, ensuring your strategy stays competitive. Get insights and guide your team with tailored analyst support.

🌍 In 2025, European travelers plan more international leisure and business trips than in 2024, despite economic and geopolitical challenges. Total travel gross bookings rose 6% in 2024 to €347 billion, with a projected increase to €415 billion by 2028. Online bookings grew 11%, reaching €236 billion in 2024, with penetration expected to rise from 68% in 2024 to 74% by 2028. Sustainability and digital efficiency, including AI advancements, are priorities amidst moderate growth and overtourism issues in places like Barcelona and Venice.

💻 U.S., U.K., France, and Germany travelers rely on OTAs and search engines to choose destinations, with the U.S. preferring search (38%) and Germany OTAs (37%). Regional differences show Northeast U.S. travelers favor review sites, while the West uses OTAs and Google Maps equally. Generationally, Millennials and younger rely heavily on digital tools, unlike Gen X and older. Brands must adapt strategies to these patterns for effective engagement, as digital influence varies.

Over 70% of global travelers prioritize authentic, local experiences. Studies from Booking.com and Skift show a shift towards Craft Lodging, which emphasizes authenticity, character, and personal touch. Independent properties benefit from this trend, offering distinct character and personalized service. Larger brands are adapting by allowing more service personalization and local partnerships. Authenticity is becoming a baseline expectation in hospitality, aligning with values like sustainability and community impact. Craft Lodging is reshaping the future of travel.

🗺 More than 11 million people in the UK plan overnight trips this August bank holiday, generating approximately £4.1 billion in domestic tourism spending, according to VisitEngland. This figure surpasses last year's 11 million and 2023's 9.7 million trips. Despite a 5% decrease in domestic trips in 2025, the holiday presents a boost. About 7.3 million people remain undecided, citing affordability, weather, and waiting for deals. The tourism sector anticipates economic growth from the holiday.