Edinburgh

Barclays analysts weighed in with their views on the major U.S.-based hotel groups.

Hotel industry analysts at Baird expressed caution about softening March demand trends, noting that U.S. RevPAR growth is tracking over 200 basis points below initial expectations.

Despite rising costs outpacing revenue growth in 2024, the hotel industry sees potential for recovery in 2025 through increased guest spending, job growth, and major events.

Lodging Analytics Research & Consulting forecasts moderate growth in U.S. hotel performance, with rising RevPAR and hotel values through 2025, despite slight margin erosion.

Design Hotels reported 10% portfolio growth, highlighted by new agreements including new Firmdale properties, and expansion with Grupo Habita, Drift Hotels, and ASH.

PMG and Hilton are developing the Waldorf Astoria Residences in Denver Cherry Creek, introducing the luxury brand to Colorado with 37 high-end residences and exclusive amenities managed by Hilton.

Baird predicts short-term negative impacts on hotel revenues from recent hurricanes but expects a boost in the intermediate term due to FEMA, insurance, and clean-up crew spending, especially benefiting select service and extended-stay hotels

Hyatt is set to sell the Hyatt Regency Orlando for approximately $1.02 billion to Ares and RIDA Development, with Hyatt retaining a preferred equity interest and a 30-year management agreement.

Wyndham showed strong performance through expense containment and share repurchases, and Accor increased RevPAR, net unit growth, and EBITDA.

The U.S. hotel construction pipeline has reached a 16-month high with significant growth in midscale and economy segments, driven by newer brands and extended-stay projects.