Mixed Findings From the U.S. Hotels State of the Union Report
Skift Take
CBRE's April 2025 report shows short-term rentals gaining market share as Google travel searches decline, suggesting potential slowdown in 2025 travel demand.
According to CBRE’s U.S. Hotels State of the Union April 2025 Edition, February RevPAR grew 1.9%, supported by growth in most markets. ADR growth of 1.4% lagged inflation. Occupancy growth continued to moderate but was 0.5%. RevPAR growth for all chain scales was positive in February, but the pace of increases slowed in most chain scales. Higher-priced chains outperformed during the month. Short-term rentals continued to take share from hotels, with STR demand growing 4.6% compared with a 1.5% increase in hotel demand. STR share of demand increased again in February to 13.3% compared with 11.7% in 2019. STR RevPAR increased 5.2% in February as ADR rose to 140% of 2019 levels and occupancy remained steady at 99% of 2019 levels. Wage growth continued to outpace inflation by 122 bps in February, indicating consumers might have the money to travel. Outbound international travel increased to 5.6%, to 125% of 2019’s level in February, while inbound lagged at 84%. TSA thr
