Market Trends

📅 October 2025, Arlington, Virginia—U.S. hotel occupancy decreased for the eighth month year-on-year to 65.8%, a 2.4% drop. ADR increased 1.5% to $167.71, while RevPAR fell 0.9% to $110.35. New York City had the highest occupancy at 89.4% (-1.6%). Tampa, Florida (62.5%), and St. Louis, Missouri (63.1%) reported the lowest occupancies, with Tampa affected by post-Hurricane Milton demand. Top 25 markets outperformed others in occupancy and ADR.

📈 U.S. hotels faced a challenging 2025 with RevPAR averaging 9% below budget due to weaker ADR and slower recovery. But GOP margin stood at 37.7%, just 1.2 points under budget, thanks to better labor controls and frequent forecasting. Upper midscale and upscale hotels led in GOP, with Hawaii, California, New York, and D.C. outperforming in RevPAR. In 2026, operators will focus on real-time forecasting and labor-flex models for improved accuracy and profitability.

🏨 Lenders, branding agencies, interior designers, and contractors are pivotal for hotel projects. Lenders provide funding, often through SBA, seller financing, or bridge lending. Branding agencies craft the property's identity, while interior designers ensure every element reflects this. Contractors manage cost and timelines, crucial for seasonal markets. Lessons from past projects highlight the importance of the right partners in creating successful, proud-worthy hotels. Skipping crucial partners initially led to learning experiences and avoiding repeat mistakes.

🏨 Watergate Bay Hotel, based on the North Cornwall coast, won the Gold Cornwall Tourism Award for large hotel of the year and the Winner of Winners title on 13 November 2025. The hotel will represent Cornwall at the 2026 Visit England Awards. Recent expansions include appointing a new executive head chef, COO, and GM. The hotel will open Cornwall’s first beachside real ice rink on 17 November. Key partnerships include Land Rover Discovery.

🎁 More than a third, or 37%, of UK residents plan to travel domestically to visit family and friends this Christmas, according to a survey of 45,000 by Travelodge. Only 4% will go overseas. Among these, 14% will sleep on sofas or floors. The survey also reveals 49% prefer regional Christmas markets, with Bath leading the list. Traditional meals remain popular: 65% will have turkey. Casual outfits dominate, with 45% opting for comfort.

🗺 Provence-Alpes-Côte d'Azur saw an 11.8% RevPAR increase over the 11 November 2025 weekend, driven by a 10.7% rise in average daily rates, mainly in luxury hotels. Visitor numbers slightly increased (+0.5 points) due to favorable weather and international tourists. Cannes and Nice excelled, with Cannes' RevPAR surging 34.3%, linked to the European Pensions & Investments Summit starting 12 November. In contrast, other French regions didn't perform as well.

🏨 Nov 14, 2025: U.S. hotels face mixed fortunes. Economy and mid-scale segments struggle with RevPAR barely above zero, while luxury hotels see over 5% RevPAR growth through August 2025. Luxury ADRs are up 5% year-on-year, but demand from younger travelers and value shifts pose risks. Luxury-hotel growth forecasts show 4-5% CAGR in major regions, with investment favoring premium assets. Hoteliers must enhance brand value and manage costs amid a tightening market.