National CRE News In Your Inbox.
Sign up for Connect emails to stay informed with CRE stories that are 150 words or less.
U.S. Hotel Sector Forecast Calls for 2% RevPAR Growth
Diminishing top-line headwinds and tailwinds are setting 2025 up for RevPAR growth of approximately 2% for the U.S. hotel sector, CBRE reported. The growth will be fueled largely by room rate gains, because other contributors like inbound international travel, airline passenger throughput, real GDP growth and growth in discretionary income are slowing. Further, competitive encroachment from alternative lodging sources remains a concern.
CBRE said RevPAR growth is expected to be strongest in urban locations at 2.8% and softest in suburban and small-town locations at 1.3% and 1.8%, respectively. Higher-priced hotels are once again expected to outperform in 2025 from mid-single-digit percentage increases in inbound international travel, modest increases in group demand and a slight improvement in business travel.
Although the U.S. saw an 11.5% decline in hotel investment volume in 2024, CBRE noted in its 2025 Global Hotel Outlook report that total global demand for hotel assets was up by 16% and cross-border capital surged by 55%.
- ◦Lease
- ◦Sale/Acquisition
- ◦Economy
