Flat Growth for U.S. Hotels Forecast Amid Economic Uncertainty
Skift Take
The U.S. hotel industry is bracing for slower growth as CoStar and Tourism Economics have revised their forecasts downward for 2025-2026.
The DJIA and Nasdaq were both up 207 points on Friday, while the S&P 500 rose 49 and the 10-year treasury yield was up .04 to 4.29%. Lodging stocks were mixed. SHCO was up 12% as they swung to a profit in 2Q. SVC continued its decline and RLJ did not get a good response to their earnings report, down -6% on the day.
RLJ beat estimates, but like many others, they cut guidance. RLJ also only bought back $6 million worth of stock in 2Q at an average price of $7.14.
DiamondRock Hospitality beat estimates and also upped 2025 EBITDA guidance. DRH had given an intra-quarter update.
The U.S. hotel industry is bracing for slower growth as CoStar and Tourism Economics have revised their forecasts downward for 2025-2026. These adjustments reflect ongoing economic uncertainties and subdued performance. Key metrics such as demand, ADR, and RevPAR have all been lowered, with demand forecasted to drop by 0.6 percentage points in
