Market Trends

🏨 Latin America's Q4 2025 hotel construction pipeline grew to 774 projects/117,260 rooms, a 13% increase in projects YOY. Mexico leads with 257 projects/38,669 rooms. Brazil follows with 133 projects/17,719 rooms, a 25% increase. The Dominican Republic has 84 projects/18,061 rooms. Mexico City tops cities with 30 projects/3,367 rooms. In 2025, 71 hotels/12,160 rooms opened, with 125 hotels/20,467 rooms expected in 2026. Midscale projects saw a 21% rise.

🌏 Asia-Pacific's travel scene is diversifying, with 4,000 travelers from five countries showing varied trends. China and India expect 3.2-3.5 trips annually, compared to 1.9-2.3 in Australia, Japan, and South Korea. Chinese tourists plan to spend $7,748 per trip, Australians $7,124, and Indians $5,154. While 61% of Chinese travelers are food-driven, 52% of Indians seek adventure. Safety is a priority, influencing airline and accommodation choices for 89% of Indians and 85% of Australians.

📚 Saladplate, part of Informa Markets, serves the hospitality, food, and beverage sectors. It offers insights, innovation, and trends through weekly news, a monthly newsletter, and bi-monthly e-magazines. The platform connects users to 10,000+ brands and 35+ international trade events.

🏨 Luxury hotels face a fragile growth despite sophisticated marketing, as direct bookings plateau and customer acquisition costs rise. The core issue is dependency on "rented demand" through third-party platforms, versus developing "owned demand" through direct, permission-based guest relationships. Rented demand is structurally constrained, lacking ownership. To resolve this, hotels need an "Owned Demand Infrastructure" (ODI) to own guest identity and data, enhancing acquisition, lifetime value, and reducing reliance on intermediaries.

🗺️ Citizen Bank’s December tracker shows travel spending dropping from 12% in January 2024 to 8% by December 2025. Bank of America reports transportation spending, including travel, is declining year-over-year. Citigroup’s CFO Mark Mason notes a shift from travel to essentials. Travel spending grows at ~4% annually, while total consumer spending rises over 8%, suggesting the experiences-over-goods trend may need reevaluation. The McKinsey chart, last updated in 2023, may not reflect current dynamics.

📈 December 2025, India: Air travel disruptions impacted the hospitality sector, lowering occupancy to 68-70% and ARR to ₹10,000-10,200, with RevPAR dropping 6-8% MoM. Despite this, ARR and RevPAR grew by 7-9% YoY. Bengaluru led ARR growth at 20-25% YoY, followed by Hyderabad at 18-20%. Chandigarh achieved the highest occupancy growth, 2-4% YoY. Q4 2025 saw occupancy improve to 66-68% with a 3-5% QoQ increase in RevPAR, driven by festive demand.

📅 In 2025, SiteMinder's report shows hotel arrivals beyond peak periods increased, with 65% of markets seeing less concentration in their busiest months. Room rates rose in 70% of markets, averaging US$194. Major peak periods in Italy, Spain, Portugal, and Thailand saw less concentrated arrivals, indicating a shift in booking behavior. Asian travel, particularly from China and India, surpassed pre-pandemic levels. Expedia Group led North American bookings, and the average booking lead time extended to 32.15 days.

📊 Heraklion and Corfu saw a 6.3% and 6.1% rise in international arrivals in 2025, while Santorini faced a 13.6% decline due to earthquakes. Greece remains among the top 20 water-stressed countries, prompting a €2.5 billion water-security plan. Attica leads in visits and receipts with a 24% increase in receipts. The hotel sector saw 8 million room nights and €2 billion in revenue but grapples with high taxes and costs. Key transactions include Hilton Garden Inn's €45 million sale.

🏨 In 2026, hoteliers face the "Symptom Data" trap, focusing on search volume and competitor rates for ease. Generic hotels follow market trends for survival, while differentiated hotels risk "strategic suicide" by not leveraging unique pricing power. The "In-Sync Gap" highlights a 10% spike in October hotel searches, driven by factors like venture capital flow or new flight routes. Differentiated hotels should focus on early planners' motivations to avoid becoming generic commodities.