Market Trends

📈 Eastern Europe leads with TRevPAR up 6.4% and GOPPAR up 9.8%. Southern Europe shows 4.6% TRevPAR growth, while Western and Northern Europe see lower increases (up to 1.9% and 1.3%, respectively). Spain's GOP margin holds at 41.0%, with TRevPAR rising 3.0% and labour costs increasing 4.0%. Credit card commissions are now €2.7 PAR, and Sales & Marketing expenses have more than doubled to €3.6 PAR. Utilities costs are at €5.0 PAR, down from €7.0 PAR earlier in 2023.

🛠 AHLA's 2026 report predicts growth driven by FIFA World Cup and America250. Hotels paid nearly $128 billion in wages in 2025, estimated to hit $131 billion in 2026. Taxes generated reached $85.1 billion, expected to grow to $87 billion. With over 2 million jobs supported, the workforce will expand by 30,000, totaling 2.2 million employees. Guest spending to rise 1.7%, reaching $805 billion in 2026. Operating profits remain at 90% of 2019 levels due to cost pressures.

📈 Global Hotel Alliance's 2025 revenue hit $3.2 billion, up 21%, driven by international travel, which made up 67% of revenue, with Thailand, UAE, Singapore, and Spain as top destinations. Repeat-stay and cross-brand revenues increased by 18% and 15%, respectively. Membership rose 25% to over 34 million, while direct digital bookings saw a 29% rise. The US and UK led as outbound markets. GHA added eight hotel brands, expanding its global footprint.

🏨 WASHINGTON, D.C. — What? The 2026 State of the Industry report by AHLA highlights hotel performance and future prospects. In 2025, hotels generated $85.1 billion in taxes and employed over two million people. Hotel guest spending is projected to reach nearly $805 billion in 2026. How? Operating expenses and workforce challenges remain. Why? Major events like the FIFA World Cup are expected to boost travel demand. The hotel workforce is projected to grow by over 30,000 jobs in 2026.

🌳 In an era dominated by digital advancements, the author emphasizes the importance of cultivating physical spaces with love and care. Living close to their childhood home, the author and their wife, Helen, focus on passing these values to their children. By nurturing small areas and fostering genuine connections, they argue for a return to meaningful, community-focused living. A $4,000 trailer with a lovingly crafted porch exemplifies this approach, highlighting that cherished spaces can profoundly influence future generations.

🏠 Sonesta International Hotels achieved a remarkable 26% franchise net unit growth in 2025, driven by organic growth and the sale of 112 SVC properties with long-term franchise agreements. In 2023, Sonesta introduced four new brands, including The James and Sonesta Essential Hotels, expanding their 13-brand portfolio. This growth highlights Sonesta's franchisee-friendly, relationship-first approach, ensuring its strong position in the competitive hotel market.

📈 Arlington, Virginia—At the Americas Lodging Investment Summit, CoStar and Tourism Economics revised the 2026-27 U.S. hotel forecast. In 2026, occupancy, ADR, and RevPAR each increased by 0.1%, while supply growth decreased by 0.2% and demand dropped by 0.1%. RevPAR is projected to rise by 1.4% in 2027, below the long-term 3.0% average. The 2026 forecast anticipates stronger top-line performance and supportive conditions despite a softer job market and expense growth outpacing inflation.

🏨 As of Q4 2025, the U.S. hotel construction pipeline had 6,146 projects with 720,089 rooms, according to Lodging Econometrics. Projects under construction were 1,088, with 134,380 rooms. The early planning stage had 2,883 projects and 331,959 rooms. Brand conversions hit a record 1,497 projects (148,981 rooms), a 12% YOY increase. New hotels in 2025 totaled 640, expanding supply by 1.3%. Expected growth includes 708 hotels in 2026 and 824 in 2027.

🏨 Dallas, Q4 2025, U.S. hotel construction pipeline: Dallas leads with 193 projects/23,720 rooms; Phoenix tops under construction with 35 projects/4,829 rooms. Dallas has 74 planned starts and 85 in early planning. Q4 2025: Houston/Atlanta lead renovations with 35 projects. 285 new announcements: Phoenix leads. 2026: Phoenix to open 23 hotels, New York 22. 2027 projected: Dallas leads with 37 hotels, followed by Atlanta's 28. South and Southwest dominate hotel construction.