Market Trends

🛑 U.S. lodging demand grew by 0.7% in 2023-2024, slowing after pandemic recovery. In May 2025, CBRE forecasted a 0.9% rise in lodging demand. In 2024, 4,200 hotels averaged 218 rooms with 70.2% occupancy and a $214.89 average daily rate. Franchise fees rose 3.5% in 2024, led by 3.9% loyalty program fees and 3.8% reservation/marketing fees. Luxury hotels saw 6.4% fee growth, while midscale fees fell 6.6%. Brand-managed luxury hotels recorded higher fee growth than third-party managed properties.

📅 Wed, Oct 8, 2025, at 11:00 AM EDT, the HT 2025 Guest Engagement Study webinar explores what restaurant and hotel customers desire and are willing to spend more on. Based on a survey of over 1,000 guests, this study serves as a guide for businesses. Speakers include Robert Firpo-Cappiello, Editor-in-Chief of Hospitality Technology, and is sponsored by Intelity and Softtek.

???? Key Data's analysis reveals that nearly 40% of US Airbnb cancellations in Q4 2024 occurred 7–30 days before check-in. Starting 1 October 2025, Airbnb's updated cancellation policy will offer guests at least a 50% refund in this window. In 2024, 16% of cancellations happened 7–14 days out and 23% occurred 14–30 days out. This policy change aims to boost guest confidence but may impact property managers' revenue, requiring strategic adjustments.

🏨 U.S. hotel industry reported mostly positive year-over-year comparisons for August 24-30, 2025. Occupancy was 63.4% (down 0.8%), ADR was $155.87 (up 1.0%), and RevPAR was $98.88 (up 0.2%). Houston saw the largest declines in occupancy (56.3%, down 12.0%) and RevPAR ($63.48, down 16.7%) due to post-Hurricane Beryl effects. Las Vegas experienced a 6.8% drop in ADR ($184.28), while St. Louis had a 6.9% increase in occupancy (60.7%).

💰 Nearly two-thirds (63%) of travelers use points for trips, according to the Global Rescue Summer 2025 Survey. Usage is consistent across age and gender, with 65% of men and 61% of women participating. However, US travelers are 35% more likely to use points than non-US travelers (67% vs. 50%). Non-US travelers are 46% more likely not to use points compared to Americans (41% vs. 28%). The disparity could be due to access to loyalty programs or travel credit cards.

🌎 Australia and New Zealand's travel industry grossed US$37.8 billion in 2024, surpassing pre-pandemic levels due to increased prices rather than visitor numbers. Digital adoption is nearing maturity, with online penetration at 59% in 2024, forecasted to reach 61% by 2028. Airlines are expected to grow from 2025, benefiting from partnerships and increased fares, while hotels and car rentals face challenges. Success hinges on attracting high-value customers and strengthening direct relationships.

🏨 Warner Hotels announced a £15.5m investment in Thoresby Hall, Nottinghamshire, transforming it into a flagship 'Reserve by Warner Hotels' destination. The project includes 221 refurbished rooms, a wellness retreat, and upgraded amenities. This is part of Warner's £120m transformation strategy since 2021, including projects like Studley Castle and Heythrop Park. CEO Paul Pomroy highlights strong UK short break demand, with Blackstone's backing reinforcing their market leadership.

🏨 UK hotel sector saw a significant boost in July 2025 with occupancy, room rates, and profits surpassing the previous year for the first time in eight months. London hotel occupancy reached a six-year high of 89.9%. Average daily rates rose to £271.52 in London and £184.34 in the UK. Gross operating profits increased slightly to 49.6% in London. The Oasis reunion contributed to the sector's success, alongside higher consumer confidence and economic recovery signs.

💸 Diego Acosta, Director at Flex Pay and HSMAI Revenue Optimization Board Member, reveals key insights on hotel distribution costs. Using tools like Juyo Analytics and Kalibri Labs' Hummingbird helps approximate reservation costs, although full granularity is challenging. Direct bookings aren't always more profitable due to additional expenses like ad campaigns and loyalty costs. Jens Egemalm of Pandox Hotels suggests a formula to assess true channel yield. Google’s PMAX campaigns can enhance direct booking strategies amidst competition.