Market Trends

📈 The 37th annual Hunter Conference took place at the Signia by Hilton Atlanta from March 16-18. Attendance was strong, with industry leaders discussing resilience in hospitality amid uncertainties. Hotel deal activity increased to $25B but remains below historic peaks, with values down 20-25%. New hotel construction is at a decade low, while conversion activity is at a 10-year high. Debt financing is improving, yet equity remains tight. RevPAR growth shows promise for 2026 despite geopolitical and cost risks.

📈 Mar 26, 2026: The 2026/27 corporate rate negotiations reveal North American hotel ADR growth of just 1.6%, with EMEA at 1.9%. A BTN survey of 232 travel managers shows 61% expect 2026 rates higher than 2025, but only 24% foresee increases above 5%. Fixed rates remain favored by 83% of travel managers, yet 60% now prefer hybrid models. Amadeus reports 30-40% of business trips include leisure extensions. Rate caps pose risks, often limiting revenue in strong market years.

🏨 North Bethesda, Maryland—Research by Choice Hotels International reveals key trends in travel preferences. 64% of travelers value rewards, and 83% emphasize trust as vital for hotel value. 73% prioritize comfort, consistency, and cost balance, while 75% appreciate thoughtful gestures over basic amenities. 57% have encountered hidden fees, undermining value perception. The findings highlight that value is tied to trust and loyalty, not just cost, impacting travelers' choices.

📈 In 2025, the European hotel investment market soared to €22.6bn (£19.5bn), marking a 30% rise from the previous year. There were 461 deals involving 725 hotels, with an average hotel price of €31.1m (£27m) and a 7% price increase. The UK led the market, contributing 25% of the total volume. Single asset transactions, a significant portion of the activity, hit €15.6bn (£13.5bn). North American buyers dominated hotel portfolio purchases with €599m (£518m).

📍 Accor's CEO Sébastien Bazin, speaking at IHIF in Berlin, highlighted travel shifts due to geopolitical instability. Travelers are booking nearer to departure, with 60% of Accor's clients deciding within 12 days. The Iran war affects Middle East travel, with fewer visits to Dubai and GCC countries, redirecting tourists to other destinations like Sharm El-Sheikh. Hotel operators are urged to maintain long-term strategies despite these changes.

📈 In September 2026, the European Union's Empowering Consumers for the Green Transition Directive will require companies to independently verify environmental claims. Green Tourism has submitted a new certification standard to UKAS to meet these requirements. This affects UK hotels targeting European guests, as non-compliance may lead to loss of visibility on platforms like Booking.com. Green Tourism supports over 3,000 members globally, with 50,000 assessments completed, and has introduced a GreenCheck platform for efficient verification.

💸 Mar 25, 2026: Corporate rate agreements set annually often fail due to loading errors and booking tool issues, leading to 5-10% booking loss. Regular audits in January and mid-year, alongside monthly room night tracking, are essential. Out-of-cycle renegotiations can occur if rates become uncompetitive or account demand increases. A quarterly management cycle improves program performance, not requiring dedicated resources for hotels with 10-20 accounts. Consistent relationship management, not the best rates, often secures repeat business.

🏨 In 2025, Europe's hotel investment market reached €22.6 billion, a 30% increase from 2024. The UK led with 25% of the market volume. There were 461 deals involving 725 hotels, with an average transaction price of €31.1 million. Single asset transactions hit a record €15.6 billion. London surpassed Paris in single asset market liquidity with €1.8 billion. Portfolio transactions grew 3% to €7 billion. European investors led with 81% of single asset transactions.