U.S. Hospitality Outlook Report | 2025
- zaverhotels
- Jun 10
- 1 min read
The hospitality sector stands at a crossroads. After surpassing pre-pandemic highs in occupancy, ADR, and RevPAR, 2025 began with optimism, now tempered by complex challenges. While Luxury and Upper Upscale properties seem resilient amid slowing international travel to the U.S., other segments may struggle.
Key Takeaways:
Yield-driven investments are more lucrative than value-add ones, given current market uncertainty.
Key lodging performance metrics have noticeably improved since the lows of 2020, in some cases outpacing the levels reached in 2019.
Construction cost increases will crimp new deliveries over the next couple of years, which will help support the valuation of existing properties.
Consumer spending indicates reduced demand for travel in 2025, although Luxury and Upper Upscale properties are less likely to be impacted than Economy and Midscale properties.
