Fitch Sees Strong Hotel Outlook for 2025 on Supply Constraints
Skift Take
Fitch Ratings' 2025 hotel sector outlook is neutral, reflecting stability, moderate growth, and varying regional confidence, with steady revenues supported by limited supply and strong business travel momentum.
In another strange day on Wall Street, the DJIA was down 99 points, but Nasdaq surged 348 while the S&P 500 was up 49, and the 10-year treasury yield was up .04 to 4.27%. Lodging stocks were modestly higher with new highs set by WH and XHR. VCSA was up 12%, SOHO was up 5% but SVC was down -7% on the day.
Fitch Ratings' "neutral" hotel sector outlook for 2025 reflects a mix of stability and modest growth across segments and regions. Fitch expects pricing power to moderate, but room rate increases will be possible as there is still a lack of new supply for hotels. This would allow hotel operators to generate steady revenue. Regionally, the outlooks are neutral but vary in confidence. Asia-Pacific, particularly Greater China, has challenges due to economic pressures and weak domestic demand. Fitch expects the U.S. to perform similarly in 2025 to this year, with some potential upside from an improved macro outlook. In contrast, growth in Europe might
