U.S. Hotels Face a Challenging Landscape This Year

Key Points

• The U.S. lodging sector faces a challenging 2025, with slowing GDP growth, rising inflation, and a significant deceleration in RevPAR growth due to macroeconomic headwinds.
• Hotel performance is split, with luxury properties outperforming economy hotels, and new developments and renovations continuing across several cities.
• International leisure travel to the U.S. has declined, while inbound corporate travel and upscale hotel segments show resilience; new hotel projects and refurbishments are also underway in Europe.

Summary

The article discusses the challenging outlook for the U.S. hotel industry in 2025, citing macroeconomic pressures like slow GDP growth and rising inflation, which dampen travel demand and limit RevPAR growth. While luxury hotels continue to outperform economy segments, ongoing renovations, rebrandings, and new hotel openings are reported across the U.S. and Europe. Travel trends highlight a decline in international leisure visitors, mixed results in domestic travel, and some positive momentum in corporate and upscale segments, with future events and new hotel developments offering potential for recovery.