Latest 2025 U.S. Hotel Industry Projections

The DJIA fell 129 points, but Nasdaq was up 186, the S&P 500 rose 15 points, and the 10-year treasury yield was up .02 to 4.20%. Lodging stocks were modestly higher, but the biggest mover was to the downside, with AHT down -7%.

Lodging Analytics Research & Consulting has released its latest quarterly Market Intelligence Reports for 62 markets under current coverage and the U.S. overall. For 2024, U.S. RevPAR is expected to increase by 1.4% to $99.57, driven by ADR growth of 1.6% to $158.53, while occupancy declined 0.3% to 62.8%. LARC forecasts 2025 U.S. RevPAR to increase by 2.7% to $102.29, driven by ADR growth of 2.7% to $162.85, while occupancy remains at 62.8%. For 2024, LARC forecasts U.S. Hotel EBITDA to decline 1.6%, with slight margin erosion, and Hotel Values to increase 5%. For 2025, LARC forecasts U.S. Hotel EBITDA to increase by 1.1%, with slight margin erosion, and Hotel Values to increase by 3%. Over the next five years, LARC expects Hotel Values to increase by a total of 12%.

NexGen Hotels announced the acquisition of the Fairfield Inn & Suites by Marriott Fort Lauderdale Northwest in Tamarac, Florida. The 120-room hotel, managed by AD1 Global, features an outdoor pool and a fitness center.

Bowman Development’s fifth hotel, a 100-room Tru by Hilton, is expected to open by May 2026 in Hagerstown, Maryland. A groundbreaking for the $11.6 million construction project was held in September. The four-story hotel will be operated by Bowman Hospitality.

The Waldorf Astoria New York announced it will start accepting reservations beginning December 10 for stays in 2025. Highlights of the transformed property include 375 luxurious rooms and suites, world-class dining, including signature restaurant Lex Yard, and the return of Peacock Alley. There will also be 43,000 square feet of re-imagined event space and a spa & fitness center with a serene outdoor terrace.

IHG Hotels & Resorts announced the re-opening of a newly converted Holiday Inn Express in the heart of downtown Baltimore, Maryland. The hotel features 123 rooms, 1,800 square feet of meeting space, and an outdoor pool with a slide. Holiday Inn Express Baltimore at the Stadiums is owned by Shree Sai Siddhi Baltimore, LLC, and managed by Wankawala Organization.

The long-awaited Palm House hotel in Palm Beach, Florida, has partially re-opened with the renovated property opening 36 of its 79 rooms. The hotel is owned by an affiliate of L&R Hotels and is branded as part of the company’s iconic Luxury Hotels collection.

Project partners have buttoned up the exterior and made significant headway on interior work for the condominiums, restaurants, and hotel that comprise one of Keystone, Colorado’s largest-ever developments, Kindred Resort. Kindred’s team is optimistic the Kindred Hotel could start taking bookings as soon as January to officially open by the summer. With the construction finish line in sight, the team released more details on what the development will entail. Project partners include PCL Construction, Vail Resorts, RockResorts, OZ Architecture, LIV Sotheby’s International Realty, and Title Company of the Rockies. In addition to the 107-room hotel, the development includes three restaurants, 95 condos, event space, and more. In the center of three towers, two of which are for condos and the other for the hotel, will be a courtyard with an Astroturf field, fire pits, and yard games. The Kindred Hotel will also house a bar, a kid’s club, a private club, an outdoor heated pool, a fitness club, and valet ski parking.

City leaders are seeking a developer for a 650-room hotel in downtown Tulsa, Oklahoma. The hotel will replace the current police headquarters and will cost $390 million. City staff expects to have a developer by late 2025 and hopes the project will be finished by 2030.

European Highlights

KKR and The Baupost Group announced a joint venture to purchase a portfolio of 33 Marriott International hotels across the UK from a wholly owned subsidiary of the Abu Dhabi Investment Authority. Amante Capital, KKR’s vertically integrated European hospitality platform, will serve as the managing partner for the joint venture, and the properties will continue as premium Marriott-branded hotels. The 6,500-key portfolio consists of 33 full-service properties branded as Marriott and Delta by Marriott in London and prime regional cities, including Edinburgh, Glasgow, Leeds, and Liverpool. KKR Capital Markets and Eastdil Securedarranged financing for the transaction.

Covivio Hotels and AccorInvest finalized a consolidation deal for ownership of the premises and businesses of their hotels for a total exchange value of almost €800M. Covivio Hotels announced the completion of the process of consolidating ownership by joining owned hotel operating and property companies with AccorInvest. At the end of this operation, initiated at the end of 2023, Covivio Hotels holds full ownership of 43 hotels located in France, Belgium, and Germany, and sells to AccorInvest 16 hotels in the same regions. Of the 43 hotels involved, 14 will be managed directly by Covivio Hotels’ hotel management platform, WiZiU. In order to accelerate the planned repositioning plan, Covivio Hotels will also rely on two other players, Atypio and Sohoma, which will operate 12 and 10 establishments, respectively, via management contracts. Accor will continue to operate five hotels. With the exception of two hotels located in Germany, for which a new lease agreement will be signed with B&B Hotels, all establishments will remain under the Accor brand via short- and long-term contracts. Convivio Hotels plans to launch around ten renovation programs from 2025, including the Ibis Montmartre, the Mercure hotels in Boulogne, Nice, and Lyon, and the Novotel Sevres, capitalizing on the recent repositioning of the Novotel in Bruges. The entire repositioning plan and related works represent an investment of €100M.

Wyndham Hotels & Resorts is preparing to expand further in Greece with three new hotels in Piraeus, Halkidiki, and another location in Attica during 2025-2026. Wyndham currently operates 13 properties in Greece, located in key destinations such as Athens, Thessaloniki, Halkidiki, Loutraki, Corfu, Rhodes, and Crete.

Radisson Hotel Group will debut the first Radisson Collection property in Spain’s capital. Set to open in 2027 in Madrid, the iconic Generali building will undergo a transformative redevelopment to become a mixed-use masterpiece, combining premium retail spaces on the ground floor with 154 elegant guestrooms and suites spanning 10 floors. The property will have a selection of high-end amenities, including a signature restaurant and bar on the first level, a stunning rooftop bar and restaurant on the 13th floor, a fitness and wellness center, and a spa.

The Albrighton Hall Hotel & Spa, a member of Radisson Individuals, opened near Shrewsbury in the UK. The hotel is surrounded by 15 acres of landscaped grounds featuring an ornamental lake. Albrighton Hall Hotel & Spa, a member of Radisson Individuals, has 87 guestrooms, meeting and events spaces, a full-service spa, a modern fitness suite, and fine dining options. Managed by Focus Hotels, the property also offers a variety of indoor and outdoor venues, from an intimate lakeside pagoda to elegant indoor suites, to provide a beautiful backdrop for any wedding celebration.

The Strand Turks and Caicos, located on 2,230 feet of oceanfront on Cooper Jack Bay in Providenciales, is now open. Part of The Leading Hotels of the World, Ltd, The Strand features luxury suites, multi-bedroom villas, and expansive private residences, an upscale restaurant, bar, and beach club, tennis and pickleball courts, water sports, and an exclusive marina. A full-service spa and kids’ club will open in the year ahead, along with the launch of a “Maestro in Residence” program.

Scandic Hotels Group has signed two long-term leases with property owner JV Nordvast Fastighet AB to take over two existing hotels in Helsingborg and Jonkoping, Sweden. The hotels, totaling 199 rooms, will undergo major renovations and be rebranded to Scandic Go, with openings expected in the first half of 2026.

The Royal Hotel in Ventnor, Isle of Wight, has been sold to new owners through Christie & Co. The site boasts 51 ensuite bedrooms and an extensive bar and restaurant offering views of the English Channel.