Market Trends

🏖 Aimbridge Hospitality, led by CEO Craig Smith, has launched a dedicated all-inclusive division in Miami to meet growing demand. Previously with Marriott, Smith has expertise in expanding all-inclusives in Latin America and the Caribbean. The all-inclusive model, with 88% of global inventory in these regions, is rapidly expanding, growing four times faster than other leisure segments. Aimbridge plans to start operations by year-end, aiming to capitalize on the segment's evolving high-demand for personalized and luxury experiences.

🛫 Aug 13, 2025 – China, India, and Saudi Arabia are expected to drive global leisure travel spending from $5 trillion in 2024 to $15 trillion by 2040, according to Boston Consulting Group. China is projected to lead with over 10% annual growth. Domestic travel is the largest segment, yet international travel will increase from $424 billion to $1.4 trillion. About 70% of travelers from these regions extend work trips for leisure, prioritizing experiences over goods.

📈 Amanda Hite, President of STR, shared the latest hotel industry forecast on August 7, 2025.

📅 For years, free cancellation policies have been popular among hotels, spurred by online travel agents. Larger hotels benefit as they handle last-minute cancellations without major impact. Smaller hotels struggle, especially boutique ones with fewer than 10 rooms. According to Eviivo, two-thirds of hotels offer a cancellation policy between 1-7 days, with the most effective window being 1-3 days. Speculative bookings often lead to last-minute cancellations, posing challenges but also opportunities for price adjustments.

🗺️ More than half of travelers will go solo in 2024, a market projected to grow from $482.5 billion to over $1.5 trillion by 2033. Hotels are capitalizing by personalizing digital experiences for solo guests, offering 10% discounts on single rooms, and highlighting unique perks. Locations like The Lindenberg, Le Victoria, Eremito Hotel, and Atlantic Hotels are crafting messages and spaces that cater to the independence, connection, and relaxation sought by solo travelers.

📈 U.S. luxury hotel development costs exceed $1 million per room, with average daily rates at $398. Higher interest and operating costs hinder new projects. Marriott's 69% of luxury developments mix residential and hotel spaces, like W Pompano Beach, slated for 2027. Four Seasons plans 180 properties by 2033. Global luxury hotel openings increased from 140 in 2024 to 255 in 2025, particularly in Asia. Conversion projects are favored for cost efficiency.

📈 Arlington, Virginia—2025-26 U.S. hotel growth projections from CoStar and Tourism Economics were downgraded at the 17th Annual Hotel Data Conference. For 2025, demand is down 0.6%, ADR by 0.5%, and RevPAR by 1.1%. In 2026, demand drops by 0.5%, ADR by 0.3%, and RevPAR by 0.7%. GOP margins are cut by 0.3 percentage points for 2025 and 2.3 points for 2026 due to higher F&B costs. Economic recovery is expected post-trade talks.

📊 French hotel industry showed a 1.9% increase in RevPAR in early summer 2025, driven by a 3.4-point rise in occupancy rates, though average daily rates fell by 2.8%. Paris and the French Riviera excelled with a 10-point higher occupancy than the national average, aided by high-end international demand. Notably, the Channel and Brittany coasts saw RevPAR growth of 14.9% and 10.3%, respectively. Climate change propelled the "coolcation" trend, enhancing mountain and rural tourism, with Normandy leading RevPAR growth at 14.9%.