Market Trends

🏨 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.

📊 A Florida coastal independent hotel increased direct bookings by 35% and RevPAR by 25% in six weeks by enhancing visibility. Independent hotels struggle with visibility across OTAs, Google, and local searches, not necessarily with marketing, pricing, or promotions. RevOptimum's Hotel Visibility Program aids by improving OTA placements, Google visibility, and search discovery, thus boosting direct bookings. Improving these visibility factors is essential for independent hotels to be seen and booked.

🛫 Nov 13, 2025, Deloitte reports 54% of Americans plan holiday travel between Thanksgiving and mid-January, a 5% increase from 2024. However, spending is expected to drop to an average of $2,334, an 18% decrease. While Gen Z and millennials lead travel plans, Gen Z's budget reduction hits 31%. Only 47% plan to fly, down from 55%. Generative AI use in travel planning rises to 24%. Meanwhile, 26% of travelers still pursue luxury options.

🛑 Nov 13, 2025, U.S.: Hotel performance projections for 2025-2026 face a downgrade by STR and Tourism Economics due to static macroeconomics. 2025 occupancy is forecasted at 62.3%, below 2024's 63.1%. RevPAR is expected to decline by 0.4% in 2025. ADR growth remains low at 0.8%. 2026 occupancy could drop to 62%. Economic challenges like rising unemployment and tariffs are key factors, though 2026 might see optimism from income growth and international events.

📊 Arlington, Virginia—CoStar and Tourism Economics downgraded the 2025 U.S. hotel forecast. Occupancy decreased by 0.2 percentage points to 62.3%, ADR held at +0.8%, and RevPAR dropped by 0.3 percentage points to -0.4%. Adjustments for 2026 include occupancy down 0.3 percentage points, ADR down 0.1 points, and RevPAR down 0.3 points. Amanda Hite from STR cited rising unemployment and prices. Aran Ryan foresaw moderate U.S. travel economy improvement in 2026, aided by household income growth and global travel expansion.

🏨 Chet Pipkin, founder of Belkin, shifted to hospitality with Desolation Hotel. He and his team focus on creating "aha moments" through thoughtful design, including EV chargers, Dyson hair dryers, stocked kitchenettes, and heated floors. The core of their approach is to remove friction, anticipate needs, and empower guests. If you're interested in enhancing guest experiences and learning about hospitality innovation, this content provides valuable insights on leading with authenticity and product thinking.

🏃‍♀️ The $6.3 trillion wellness economy is growing, with wellness tourism reaching over $830 billion and outpacing general tourism. Travelers often spend up to 175% more on wellness trips. The WELL Standard has certified 6 billion square feet for wellness. The article emphasizes the need for inclusive wellness initiatives targeting Gen X and integrating employee wellbeing. It also suggests exploring spiritual wellness and considering a Chief Wellness Officer role in hospitality.

📈 In the last 15 years, U.S. lodging demand shifted from corporate/group to leisure, with leisure now representing 55% of demand. Since 2020, corporate travel has plateaued at 90% of pre-2020 levels, with a 3% drop in 2025 compared to 2024. Group travel, after rebounding to 2019 levels by 2024, declined by 4% in 2025 through mid-September. Friday and Saturday now lead occupancy, reflecting leisure’s rise, while traditional business travel declines.