U.S. Hotel RevPar Expected to See Modest Growth in 2025

The DJIA fell 428 points but once again Nasdaq took it the hardest, down nearly -3% or 483 points. The S&P 500 was down nearly -2%, falling 104 points and the 10-year treasury yield was up .02 to 4.29%. Lodging stocks were lower but modestly so. WH and ABNB were both down -5%.

Goldman Sachs cut their price target on Hyatt to $150 from $170. They maintained their Neutral rating.

A detailed market forecast by STR and Tourism Economics provided a comprehensive outlook for hotel performance across Europe, Asia Pacific, the Middle East, and the U.S. in 2025. In Europe, the RevPAR for STR’s 31 European forecast markets is anticipated to grow at 2.4%, an improvement from the 2.0% observed in November 2024. This upgrade is largely due to changes in key markets like Dublin and Frankfurt. Asia Pacific’s 16 forecast markets are expected to register a 4.7% increase in RevPAR in 2025, driven by an ADR growth of 3.1%. Markets like Auckland and Brisbane are expected to experience fluctuations in RevPAR due to high supply growth. In the Middle East, changes in the pipeline remain the primary driver behind market forecasts. For Dubai, Abu Dhabi, Riyadh, and Jeddah, RevPAR is anticipated to grow an average of 2.8% in 2025, a substantial increase from the November edition of the forecast. In the U.S., the top-line RevPAR forecast remains unchanged, with 1.8% growth predicted for 2025.

A $20 million-plus renovation project at the Talbott Hotel in Chicago’s Gold Coast is expected to be completed next month. The 178-room hotel features a restaurant that includes a 100-seat outdoor patio that opened in May as part of the project. Upgrades will be made to guestrooms, the lobby, front desk, event space, and fitness center.

The Marriott Fairfield Inn in Wallingford, Connecticut is up for auction, scheduled for April 14-16, with bids starting at just over $2 million. Marcus & Millichap is the company overseeing the sale of the property. The 116-room hotel has a fitness center, business center, laundry, and convenience store.

The Ritz-Carlton Key Biscayne, Miami will close in May for a large-scale renovation which is expected to take at least six months but may last longer. Miami Herald File Gencom, the resort’s developer, is leading the $100 million upgrade. The 13-story resort has 291 rooms and includes 1,000 feet of beach access, several pools, a Cliff Drysdale Tennis Center, and a spa and fitness center. Upgrades will be made to guestrooms, restaurants and bars, public spaces, and guest amenities.

A Lake Tahoe luxury hotel development is in a precarious financial situation after receiving a second notice of default over an $82 million loan in less than a year. Lake Tahoe Partners LLC filed the notice against the developer of Waldorf Astoria Lake Tahoe, according to a public document acquired from the Washoe County Recorder’s Office. EKN Development is building the resort on the site of the former Tahoe Biltmore Lodge and Casino at Crystal Bay. EKN Development was hit with its first notice of default last April, but negotiations with the lender proved to be challenging, and a notice of trustee sale was filed in July. EKN Developmentand the lender reached an agreement before the sale, and the notice of default was rescinded. But, with the February notice of default, the status of the project’s financial restructuring is now in question.

The Homewood Suites by Hilton Eatontown, in Eatontown, New Jersey, announced the completion of a comprehensive, $5 million renovation. Managed by Avion Hospitality and owned by Highline Hospitality Partners, the hotel’s lobby, dining area, and meeting spaces were redesigned along with upgrades to the fitness center, enhanced outdoor spaces, and updated technology.

Reside launched Papago Hotel by Reside, which will operate under the Trademark Collection by Wyndham brand. Papago Hotel by Reside is a renovated 70-unit hotel located in Scottsdale, Arizona, featuring a variety of amenities including an outdoor pool, fire pit, private cabanas, as well as an onsite coffee bar, lounge areas, and a restaurant.

KC Galaxy Management Co is planning to build dual-branded Staybridge Suites and Holiday Inn Express hotel in Gardner, Kansas. According to hotelprojectleads.com, construction will start in July 2026 and be finished by the end of 2027.

Plans to build a Best Western Hotel in the Village of New Hartford, New York, have been scrapped. Instead, developers are proposing a higher-end hotel to be built, specifically a Cambria Hotel. The hotel would be four floors and include a restaurant and health spa.

In Washington, D.C., Valor Cos. plans to turn a Dupont Circle building, formerly home to The Gryphon, into a boutique hotel. The Sixty D.C., a 73-room luxury hotel that will also host two new food and beverage concepts by Scale Hospitality, is slated to open as soon as May 1. It will be the third location in the Sixty portfolio.

Castle Peak Holdings and Trailborn announced the grand opening of Trailborn Grand Canyon in Williams, Arizona, marking the brand’s fifth open hotel and fourth destination. Trailborn Grand Canyon introduces a fully redesigned and renovated hotel on Route 66 with a saloon-style event space, restaurant & bar, and family-friendly activities. The re-imagined 96-room property offers dynamic spaces for games, live music, dining, and private events. Outdoor features include a pool, hot tub, bocce court, kids’ play area, and a fire pit. Later this spring, Trailborn Grand Canyon will debut Miss Kitty’s, a full-service southwest steakhouse, grill, and bar.

Hunter Hotel Advisors announced the closing of $60.2 million in financing for seven hotel properties. The financing consists of a series of SBA 7(a) and 504 loans for the following properties: Dual Portfolio Extended Stay America in Chantilly, Virginia; Candlewood Suites in Louisville, Kentucky; Candlewood Suites in Indianapolis, Indiana; Fairfield Inn in Vinings, Georgia; Residence Inn in Lake Charles, Louisiana; and Staybridge Suites in Denver Tech Center, Colorado. The transactions involved loans ranging from $5.73 million to $12.8 million and financing up to 85% of the total cost.

Personnel Moves

6PM Hospitality Partners hired David Hale to serve as the company’s Vice President of Business Development. In his new role, Hale will lead 6PM Hospitality Partners’ expansion efforts, securing third-party management agreements with top industry brands. He will also play a key role in driving new business opportunities and collaborating with lenders, capital partners, brokers, and franchise development leaders to strengthen the company’s portfolio. Prior to joining 6PM Hospitality, Hale held similar leadership roles at PM Hotel Group, Paramount Hotel Group, and Spire Hospitality. 

Stonebridge Companies, LLC announced the appointment of Chad Goodnough as Senior Vice President of Sales Strategy & Innovation. In this role, Goodnough will develop and execute sales strategies that drive revenue growth, market share and RevPAR for Stonebridge’s extensive portfolio. Goodnough joins Stonebridge from HRI Hospitality, where he served as Senior Vice President of Sales and Marketing. 

Hyatt Hotels Corporation announced a series of changes to its Senior Leadership Team, emphasizing the company’s evolution towards a more brand-focused and agile enterprise. Marc Jacheet will be joining as Group President, Europe, Africa, and the Middle East, effective March 17, 2025, and will make a full transition into his new role effective July 1, 2025. Javier Aguila is being appointed as Hyatt’s new Chief Growth Officer, effective July 1, 2025, in addition to his recently announced role as President of Inclusive Collection, effective March 1, 2025. Jim Chu, who has served as Hyatt’s Chief Growth Officer since 2022, will assume a new position as Head of Owner Relations, effective July 1, 2025. 

Europe Highlights

Radisson Hotel Group announced its collaboration with Manchester City Football Club for the Club’s 401-room hotel, called The Medlock, set to open in late 2026. The upper-upscale hotel, called The Medlock, will join the Radisson Blu family and will form part of the Club’s £300 million development at the Etihad Campus. The Medlock will be operated by Valor Hospitality.

SLS Barcelona is set to open on April 1, 2025. The property will offer 471 rooms and suites, six distinct restaurant and bar concepts, three pools, a spa, a wellness center, and extensive events space.