Market Trends

🏨 June 2025, Arlington, Virginia: U.S. hotel rooms under construction decreased by 11.9% to 138,922 rooms from June 2024, marking the sixth consecutive monthly decline. Final planning rooms slightly dropped by 0.1% to 266,276, while planning rooms increased by 4.8% to 349,802. More than half of rooms in development are in the South, mostly outside Top 25 Markets. Mid-tier segments, especially Upscale and Upper Upscale, dominate construction focus despite a 20-quarter low in overall development.

🏁 2025 Tour de France set off outside France for the first time since 2022, starting in the Nord region. Lille's hotels saw record occupancy, reaching 78.9%, an increase of 21.7 points from the previous year. On July 3, over 42,000 spectators attended the team parade, with hotel occupancy peaking at 87.9%, and further rising to 90.9% on July 4. These figures highlight the Tour's significant impact on regional tourism and hospitality.

🏨 Soft brand hotels, blending individual charm with major group support, have emerged as a key trend in hospitality since independent hotels faced marketing challenges post-1950s branding surge. Millennials and Gen Z favor authentic, local experiences, driving demand. Soft brands offer brand reliability and loyalty perks alongside unique experiences, attracting both travelers and owners. These hotels balance creative freedom with operational support, leveraging online platforms for global reach. Expected to persist, they cater to travelers' desires for flexibility and authenticity.

🛳 Hotel guests in North America are experiencing better value for their travel dollar in 2025, according to J.D. Power's study. Satisfaction improved due to enhanced guestrooms, with 72% using smart TVs, up from 39% in 2019. Hotel app users scored 699, 68 points higher in satisfaction. Luxury leader: The Ritz-Carlton (779). Problems affect 12% of guests, dropping satisfaction by 217 points. The study benchmarks 102 brands from 39,219 responses, spanning May 2024-May 2025.

🏨 Madrid’s hotel, located 700 meters from Atocha Station, was sold post-2022 completion, featuring 230 rooms and 99 parking spaces, yielding a 19% IRR. In Seville, EXTENDAM plans a 184-room hotel in Nervión by early 2028, with amenities like a panoramic pool and BREEAM certification. Madrid and Seville are key markets with high RevPAR. The projects align with trends favoring connectivity and upscale offerings, emphasizing Spain’s strong tourism fundamentals and development potential.