U.S. Hotel Industry Expected to See Muted Growth in 2025

In Observance of the Thanksgiving Holiday in the United States, there will be no Daily Lodging Report – Asia Pacific on Wednesday, November 27, and Thursday, November 28. Regular service will resume on Monday, December 2.

Wells Fargo upped their price target on Park Hotels to $16 from $14.50. They maintained their Equal Weight rating. PK announced their 4Q dividend of $0.65 per share, which includes the $0.40 top-off dividend plus the regular $0.25 quarterly dividend.

Wells Fargo lowered their price target on Service Properties Trust to $3 from $4. They maintained their Underweight rating. WF raised their price target on Host Hotels to $21 from $19 while maintaining their Overweight rating. They also upped their Pebblebrook Hotel Trust price target to $14 from $13 while maintaining their Equal Weight rating.

Stifel upped their price target on Hyatt Hotels to $157.50 from $145.50. They maintained their Hold rating. They upped Marriott International’s price target to $283 from $252 while maintaining their Hold rating. Wyndham Hotels had their price target raised to $107 from $92 by Stifel while they maintained their Buy rating.

Truist upped their price target on Travel + Leisure to $61 from $60 while they maintained their Buy rating. They cut their price target on Hilton Grand Vacations to $51 from $52 while maintaining a Buy. Truist upped Marriott Vacations’ price target to $142 from $139 while maintaining their Buy rating.

According to CoStar, the U.S. lodging sector is expected to experience muted growth in 2025, driven by a moderate increase in ADR and stable occupancy levels, resulting in an annual increase in RevPAR of 1.5%. Despite stagnant supply levels over the past few quarters, new construction projects are expected to be spurred in 2025 by increasing optimism about a soft landing, easing monetary policies, and other capital market tailwinds. However, overall impacts from the macroeconomic environment are expected to continue to suppress demand and occupancy growth in 2025. Expected growth in ADR in 2025 offers a redeeming trend in light of muted supply and demand growth, driven by the continued strength of higher-priced chain scales. Performance gains and ADR are expected to average 1.5% and 1.3% in annual growth for 2024 and 2025, respectively, resulting in an ADR-driven annual increase in RevPAR of 1.3% and 1.5%, respectively.

Canada’s hotels witnessed a significant landmark in October 2024, as the ADR surpassed CAD200 for the first time ever, according to data from CoStar. October’s occupancy rate was 68.5%, marking a 0.8% increase from 2023. ADR rose by 2.4% to CAD200.59, while RevPAR increased by 3.2% to CAD137.32. Among the provinces and territories, Nova Scotia reported the highest occupancy level at 74.7%, 0.3% lower than in 2023. Toronto topped the major markets with an occupancy rate of 79.6%, marking a 3.5% increase from the previous year. Meanwhile, the lowest occupancy rate was recorded in Prince Edward Island at 58.2% and Edmonton at the market level at 58.4%. However, looking ahead to 2025, STR and Tourism Economics have downgraded the RevPAR growth forecast to 1.5%. ADR is expected to align with inflation, while a slight decline in occupancy is anticipated due to the growth of new inventory surpassing improvements in demand. Hotel development activity is rising, with almost 6,000 rooms expected to open in 2025.

NexPoint Hospitality Trust and NexPoint Diversified Real Estate Trust announced the execution of a definitive agreement, pursuant to which the REIT will be dissolved, and its subsidiary entities merged with and into entities owned or controlled, directly or indirectly, by NXDT. Pursuant to the Transaction, each REIT unitholder will receive, for each trust unit of the REIT, either $0.36 cash per Unit or common shares of NXDT equal to the quotient of $0.36 divided by the volume-weighted average price of the NXDT Common Shares quoted on the NYSE for ten trading days prior to the closing of the Transaction. Subject to the satisfaction of all conditions, the Transaction is expected to be completed in the first quarter of 2025. Upon closing of the Transaction, the REIT’s Units will be delisted from the TSX Venture Exchange.

A new, four-story, 124-room hotel is set to be considered in Clarksville, Tennessee, as site plans for Marriott StudioRes have been submitted to the Clarksville-Montgomery County Regional Planning Commission. Key features of the Marriott StudioRes include fully furnished studios with queen beds and a kitchen and public spaces such as a communal table, fitness room, guest-paid laundry, covered patio, and vending area.

Sage Hospitality Group has welcomed Hotel Alpenrock Breckenridge, Curio Collection by Hilton, to its hotel portfolio. Located in Breckenridge, Colorado, the completely re-imagined 205-key hotel will debut this week. Sage is managing the hotel property, including a signature restaurant and cocktail bar.

Flacks Group announced the acquisition of the 180-room Crowne Plaza North Augusta located in the vibrant Augusta, Georgia area. The hotel features meeting spaces and multiple dining options. Flacks Group was represented by Hodges Ward Elliott and advised by Blue Lotus Ventures in this acquisition. Financing was provided by J.P. Morgan.

Summit Hotel Properties and management company Crestline Hotels & Resorts recently completed a property-wide renovation of Hotel Indigo Asheville Downtown in Asheville, NC. The project featured a full overhaul of the hotel’s 116 guest rooms and public space renovations, including updates to the meeting room and fitness center, enhanced bar, coffee bar, marketplace offerings, and a new-look reception and lounge area.

Fairmont Hotels & Resorts, in partnership with Pacific6, announced the opening of Fairmont Breakers Long Beach. Nestled in the heart of downtown Long Beach, California, the landmark hotel debuts following a multi-million dollar transformation. Fairmont Breakers offers 185 thoughtfully designed guestrooms and suites, the Fairmont Spa, a rooftop bar, a pool terrace, and two signature restaurants, including the return of the beloved Sky Room, just under 10,000 square feet of flexible event space, and a two-story fitness center.

Pueblo Bonito Golf & Spa Resorts will unveil its new luxury brand with the debut of Pueblo Bonito Vantage San Miguel de Allende on February 15, 2025. The hospitality company’s first European Plan hotel, Pueblo Bonito Vantage, comprises 111 well-appointed guestrooms and suites in one wing and 45 privately-owned villas and multi-bedroom condominiums in another. Amenities include the Aromatika Spa and multiple food and beverage venues.

The much-anticipated Palm House in the heart of Palm Beach, Florida, could welcome its first guests on Wednesday following a top-to-bottom renovation. The building had been shuttered for 17 years. The current owner bought the property in bankruptcy in 2019 and has been carrying out renovations for the past three years. The Palm House will be the first U.S. property to open as part of the international Luxury Hotels brand, part of L&R Hotels. The Palm House will feature 79 rooms, including 21 suites, a courtyard anchored by an expansive pool, a bar and lounge, an interior dining room, and a function room with a garden terrace and a poolside lawn.

The 250-room Grove Hotel, in Boise, Idaho, is set for a makeover. The hotel, part of a mixed-use development that includes the Idaho Central Arena hockey venue, residential condos, and meeting space, plans to revamp its hotel rooms, update the lobby, and make other changes to the building. The hotel’s owner is Block 22 LLC.

HVS Brokerage & Advisory announced the sale of the 62-key Holiday Inn Express & Suites Wharton in Wharton, TX. The hotel was purchased by Fortune Hospitality LLC from DVD Enterprises Ltd.

Weller Development Partners and Pegasus Capital Advisors have commenced site clearing at Six Senses Grand Bahama in preparation for an official groundbreaking and ground-up construction in Q1 2025. Six Senses Grand Bahama is slated for completion in Q4 2026 and will comprise a 50-acre eco-conscious resort community that will feature 70 resort guestrooms, 38 of which are villas and 28 branded residences.

Personnel Moves

Harris Rosen of Rosen Hotels and Resorts passed away Monday morning at the age of 85. Outside of the hotel industry, Rosen was well-known in the community for his philanthropic work with scholarships, health and wellness facilities, and cancer research.

Gabriel Escarrer Julia, founder and honorary chairman of the Melia Hotel Group, has died in Palma de Mallorca at the age of 89. Escarrer Julia retired from the non-executive chairmanship of the group’s board of directors in June 2023 after almost 70 years with the company. At that time, he became honorary chairman. His son, Gabriel Escarrer Jaume, is currently at the helm as chairman and CEO.

Kalahari Resorts and Conventions announced the addition of Gino Marasco as Vice President of Sales. With over 20 years of extensive experience in the hospitality industry, Marasco brings valuable knowledge and leadership that will enhance Kalahari’s sales strategies and operational effectiveness across its four resorts. His expertise will also support the company’s growth as it prepares to open a fifth resort in Spotsylvania County, Virginia, in late 2026. Gino Marasco joins Kalahari Resorts from Timbers Resorts, where he served as Managing Director of Hospitality.

Europe Highlights

Shaner Hotels announced the formation of an alliance between its Shaner Italia division and Dubai-based The First Group. As part of the strategic alliance, The First Collection at Jumeirah Village Circle, a Tribute Portfolio Hotel, will be the first of many similar projects the partnership will seek to expand its portfolio. This is the first hotel to debut under The First Group’s lifestyle hospitality brand, The First Collection. Developed by The First Group and operated by The First Group Hospitality, the upper-upscale, 40-story hotel marks Marriott Bonvoy’s Tribute Portfolio debut in the Middle East. The 491-suite tower provides premium amenities, including a stylish business lounge, an expansive pool and sundeck, a fitness center, and a spa center. The new alliance will promote hotel management agreements throughout the Middle East, North Africa, Greece, and Cyprus. Hotels will operate under The First Collection, Tribute Portfolio, and the Marriott International family of brands.

DB Group and Hard Rock International broke ground and laid the foundation stone for the Hard Rock Hotel Malta, along with a mixed-use development, including Ora Residences with two towers of exclusive apartments and a vast mall. The 5-star Hard Rock Malta will feature 394 guestrooms and 25 suites, numerous private and public pools, a Rock Spa, a Body Rock fitness center, and 12 restaurants. The Ora Residences will offer private wine cellars, private pools, housekeeping services, chauffeurs, concierge services, and more. Another key element of the project will be St. George’s Mall, which covers over 20,000 square meters and has a mix of top-tier and more accessible brands and family entertainment. The project is planned to be inaugurated in early 2026.

Autograph Collection Hotels announced its debut in Hungary with the opening of Dorothea Hotel, Budapest, Autograph Collection. Housed across three historic buildings in Budapest’s iconic District V, the new hotel boasts 216 guestrooms and suites, multiple dining options with two additional restaurant openings in 2024, and the Spa, complete with a pool, sauna, steam room, and fitness center.

The 29-room Georgian-era hotel in Dorchester, UK, formerly known as the Best Western Wessex Royale Hotel, is now the Sleeping Bear Hotel. Sleeping Bear Hotels Managing Director Tudor Hopkins bought the hotel on October 11 from Hunt’s Food Company. Sleeping Bear describes its approach to hotels as “no hotel fluff, just the good stuff.” The Sleeping Bear in Dorchester is the first in the firm’s portfolio, but Hopkins says he would like to acquire 15 to 20 hotels across the UK.