Market Trends

🏨 In the week of December 22-28, 2024, the U.S. hotel industry saw occupancy fall by 4.9% to 47.7%, ADR drop by 1.7% to $160.96, and RevPAR decline by 6.5% to $76.83 year-over-year. Tampa experienced a surge with occupancy up 16.3% and RevPAR increasing by 22.6% to $124.36. Houston had the largest ADR increase of 5.6% reaching $97.82. Conversely, Nashville and Atlanta faced the sharpest RevPAR decreases of 35.6% ($51.68) and 21.7% ($40.05), respectively.

🏢 Courtyard by Marriott San Mateo Foster City, owned by Clarion Partners and managed by Marriott International, Inc., completes renovation of 147 rooms including guestrooms, meeting spaces, and fitness center. Located between San Francisco and San Jose, 9 miles from San Francisco International Airport, the hotel features revamped rooms with new furniture, fixtures, soft goods, and in-room entertainment technology. Amenities include a 24/7 fitness center, 1,728 square feet of event space, Bistro restaurant, and a courtyard with a fire pit.

🏠 GoMMT, Agoda, and Booking.com topped the list of distribution channels for hotel bookings in India over the past year. STAAH, with over 500 integrations, features Expedia and Airbnb in its top 10. Direct bookings increased, as STAAH SwiftBook rose to fourth place in 2024. Cleartrip, Hotelbeds, and RezLive.com entered the top 10, while STAAH GDS ranked seventh. The Indian hospitality and travel industry is growing post-Covid, with a focus on a holistic hotel commerce strategy.

🏨 U.S. hotel industry saw year-over-year improvements as of Dec. 21, 2024, with occupancy increasing by 11.4% to 48.9%, ADR rising by 2.7% to $135.79, and RevPAR growing by 14.3% to $66.36. Tampa led the Top 25 Markets with occupancy and RevPAR surging to 71.5% (up 37.9%) and $110.51 (up 63.8%), respectively, partly due to hurricane recovery demand. Conversely, Oahu Island experienced declines across occupancy (down 4.0% to 66.4%), ADR (down 16.7% to $259.60), and RevPAR (down 20.0% to $172.27). New York City boasted the largest ADR increase, reaching $351.39 (up 20.1%).

🏦 Driftwood Capital secured $62.5 million refinancing for Wylie Hotel Atlanta and Sheraton Pittsburgh Hotel. Fortress Investment Group provided a $28.5 million loan for Wylie Hotel, acquired by Driftwood Acquisition Partners in 2021 and rebranded in 2023. The 111-key Wylie offers Mrs. P’s Bar & Kitchen and event space. Starwood and Greystone Commercial provided a $34.0 million loan for the 399-key Sheraton, featuring 29,000 square feet meeting space and Factory South Shore restaurant, which underwent a $10 million renovation post its acquisition during the COVID-19 pandemic.

💪 Hilton London Bankside promotes urban wellness in 2025 with free HIIT classes every Friday starting 10th January, relaxation treatments from £110, and mixology masterclasses on 23rd and 29th January for £20 per person. Sleep Well Massage costs £120 for 60 minutes. Non-alcoholic cocktail flights at The Distillery Bankside are priced at £8 each or £16 for three, available from 2nd to 31st January. The hotel features a 17-meter heated indoor pool and Peloton Rooms for the ultimate wellness stay.

🏨 In 2025, Martin Soler discussed the Hotel Brand Pyramid, originally published by Jestafreak, highlighting its deficiencies and inaccuracies. Soler solicited feedback for a more complete brand categorization, proposing potential categories: Ultra Luxury, Luxury, Premium (formerly Upper Upscale), Upscale, Midscale, and Economy. The challenge includes incorporating regional players without creating an exhaustive list, and determining inclusion criteria such as a minimum number of rooms or hotels. Feedback can be shared through comments on the post or LinkedIn.

🏨 U.K. hotel investment transactions reached £5.75 billion in 2024, a more than 100% increase from 2023, highest since 2018. Portfolio transactions comprised 55% at £3.14 billion, with a 582% year-on-year increase. Regional transactions at £3.34 billion, 58% of total, were up 217% year-on-year. London transactions grew by 105% to £2.40 billion. Key investors include Blackstone, KKR, and Starwood Capital. Deloitte reports 72% of hospitality executives are optimistic about the sector, with a focus on cash flow management and expected increase in M&A activity.

✈ 65% of U.S. travelers flew in the past year, a decrease from 68% the previous year. Age differences emerge in travel planning, with 18-34 year olds more likely to use social media for transportation decisions than those 55+. Direct online booking is preferred by older travelers, while under-55s opt for OTAs. Cost concerns may affect future air travel decisions. Key themes include the role of social media and booking channels in travel, performance of air loyalty programs, and consumer sentiment on future air travel. Data reflects travel up to July 2024.

🏨 Blackstone acquires three hotels in Osaka and Okinawa, expanding its Japanese portfolio to $1.3 billion. The Ritz-Carlton Okinawa and Kise Beach Palace were reportedly purchased for $130 million. Japan's 2024 foreign visitor spending hit a record JPY 5.8 trillion by September, with a single-month peak of 3.3 million in July. First-half 2024 hotel investment volume reached $2.9 billion, a 30% increase over 2023. Japan anticipates 60 million annual inbound visitors by 2030.