U.S. Hotel Revenue Projected to Grow in 2026 and 2027

Mizuho downgraded Hilton to Neutral from Outperform. They cited valuation for the downgrade while upping the target price to $263 from $243. Mizuho feels there is limited upside to Street estimates in 2025 and 2026, and the stock’s valuation is full.

Truist reported on a conference call they hosted with CoStar. While CoStar expects U.S. RevPAR growth of 1.8% in 2025, with 1.6% ADR growth, for 2026 and 2027, they are forecasting further 2.1% and 2.2% RevPAR growth, respectively. Adjusted for inflation, they expect Real RevPAR growth versus 2019 to be down 6.6% in 2025, down 6.8% in 2026, and down 7% in 2027. Luxury and Upper Upscale are expected to lead RevPAR growth in 2025 at 2.9% and 3%, respectively. CoStar expects Midscale and Economy RevPAR to be down -0.7% and up 0.3% in 2025, respectively.

STR reported U.S. lodging data for the week ended 2/1. RevPAR rose 4.1%, with occupancy up 2.3%. Group RevPAR was up 7.7%.

SLTX Capital plans to convert the over-a-century-old Scanlan office building in downtown Houston, Texas, into a boutique hotel. The company plans to revitalize the space into a 140-room hotel with a restaurant, bar, rooftop garden, fitness center, valet parking, and other amenities designed to attract both visitors and locals. The project is expected to begin in early 2026 and open by summer 2027 under the Hilton Canopy brand.

The 150-room Hyatt Place Cape Canaveral and Altitude360 Sky Bar & Observation Deck will open to the public on February 20, with hotel reservations kicking off March 1. OCI Hospitality and Dorough Brothers Development & Consulting own and developed the property which cost approximately $35 million. Hyatt Place Cape Canaveral will offer multiple food and beverage venues including a rooftop bar and lounge, and a fitness center.

IHG Hotels & Resorts announced the opening of a newly converted Candlewood Suites in Pecos, Texas. Candlewood Suites Pecos, owned by Summit Pecos WSS, LLC, and managed by Palette Hotels, features 119 guestrooms, an indoor pool, and a gym.

Sonesta International Hotels Corporation announced the opening of Red Lion Hotel Charlotte, a 317-room, midscale select-service hotel in Charlotte, North Carolina, in the trendy new area of Loso.

Allegiant Travel Company announced it plans to sell a majority interest in its 785-room Charlotte Harbor luxury property. After losing about $8 million in the second quarter of 2024, Sunseeker Resort hired Prospect Hotel Advisors last summer to review and improve financial performance. Allegiant Travel Co. expects to wrap up the sale of its troubled resort this summer after having expressions of interest from potential buyers. A “high-single-digit” number of investors are considering making a bid for the resort in Port Charlotte, Florida, according to Allegiant CEO Greg Anderson. A spokesperson for Allegiant said the CEO was citing examples of hotel chains that possibly become a branding partner but that any such relationships would not be decided upon until an agreement is reached with a buyer or outside investor.

LivAway Suites and West 77 Partners announced the groundbreaking of their newest extended-stay hotel in Glendale, Arizona. In addition to the Glendale location, LivAway Suites and West77 Partners are under construction on a hotel in Tolleson and plan to break ground on four more locations in Arizona in 2025.

21c Museum Hotels officially launched Nightwatch immersive art suites at their Bentonville, Cincinnati, and Lexington properties. This sleep-in installation transforms the hotel suite into a dynamic, living artwork, offering guests a unique opportunity to engage with contemporary art in a deeply personal and sensory way.

Dreamscape Hospitality announced its selection to manage a portfolio of independent lifestyle boutique hotels in the Garden District of New Orleans. Owned by Groogrux Hotels, the portfolio includes: The Blackbird Hotel; The Garden District Hotel, opening this winter; and The White Heron Hotel, set to open in 2025.

The Chemists’ Club Hotel is now open in Midtown Manhattan. Formerly the Dylan Hotels, the 107-room hotel is owned by Azora and managed by Crestline Hotels & Resorts, LLC. The property features a fitness center, concierge service and is adjacent to the Benjamin Steakhouse for all-day dining.

TPG Hotels & Resorts announced the Veranda House will reopen on April 1, 2025, in Nantucket, Massachusetts. Owned by The Procaccianti Companies, the 19-room Veranda House is part of the Nantucket Resort Collection and follows a meticulous, full-scale restoration necessitated by a 2022 fire that led to the building’s complete demolition.

The former Hotel Harrington site in downtown D.C. has found a buyer. According to Axios, The Georgetown Company is buying the site for an undisclosed sum. While the group hasn’t yet determined what the site will be turned into, possibilities include another hotel, housing, a higher education site, or a social club, per a press release. The property’s historic façade will be maintained, and construction will likely begin next summer.

De La Vegas Capital Development is planning to build a mixed-use development in uptown Dallas, Texas adjacent to the booming Uptown and West Village districts. According to hotelprojectleads.com, the project would include office towers, multifamily, retail, restaurants, entertainment, and a hotel.

Hotel101 Global Pte Ltd and JVSPAC Acquisition Corp announced the submission of a confidential draft Registration Statement on Form F-4 to the United States Securities and Exchange Commission. Hotel101 is merging into the U.S. SPAC, trying to get listed in the U.S. with a proposed equity value of over US$2.3 billion, with the close of the merger combination expected in the first half of 2025. Hotel101 is the hotel subsidiary of the Philippine-listed DoubleDragon Corporation. The Nasdaq symbol proposed for Hotel101 is HBNB. While Hotel101mostly operates its platform in the Philippines, it started construction in Madrid on Hotel 101-Madrid in the Valdebebas area beside the IFEMA Convention Complex. Hotel101's long-term vision is to have one million rooms, operating in over 100 countries worldwide with an initial 25 identified priority countries in the medium term.

Personnel Move

Remington Hospitality appointed Brian Ehrlich as Senior Vice President of Business Development. In his role, Ehrlich will support the company’s strategic growth by identifying new market opportunities, strengthening key partnerships, and continuing to expand the company’s presence across the U.S., Caribbean, and Latin America. Ehrlich joins Remington Hospitality with over 30 years of diverse experience in the hospitality industry.

Global Highlights

IHG Hotels & Resorts debuts its first Vignette Collection hotel in South America - SOUMA Hotel Lima in Peru. SOUMA Hotel Lima, operated by Iberostar Hotels & Resorts, is now accepting reservations for stays beginning in March 2025. The hotel features 214 guestrooms, three signature restaurants, an expansive rooftop with a heated infinity pool, Bambu Spa, a fitness center, and 276 square meters of dedicated meetings and event space spread across four rooms.

The Melia hotel chain announced the addition of a new hotel to its portfolio. It is the current Hotel Golf Santa Ponsa, located in the southwest of Mallorca, which currently belongs to the Nigorra Group but will be managed by Summum under The Melia Collection brand. This establishment will be completely refurbished by its current owners to reposition it in the luxury segment so that it will reopen in 2025 as a four-star superior with 88 rooms. The Santa Ponsa will feature a fine dining restaurant, a rooftop bar, a spa, pools, and meeting rooms. The project is the fourth collaboration between the two companies.

PPF and Czechoslovak Group are reportedly in talks to jointly acquire the Four Seasons hotel in the Prague city center. As bne IntelliNews covered, PPF and CSG recently formed a real estate joint venture Majestic Hospitality, in which PPF holds 70% through its PPF Real Estate branch. Online news outlet Seznam Zpravy reported that the joint vehicle is in talks to acquire Four Seasons from Northwood Investors.

Macdonald Hotels and Resorts wants to sell a holiday resort in North Wales to fund investments in other parts of its portfolio. Plas Talgarth Resort is now on the market with Knight Frank. It includes 77 studios and apartments with a total of 184 bedrooms as well as a spa, indoor and outdoor pools, and event facilities.