hotelAVE 1Q25 Hospitality Earnings Summary is now available! We’re thrilled to share positive insights into the hotel industry. A glimpse:

• 1Q25 U.S. RevPAR change was -0.7% to 7.0%; with an average growth of 3.5% (mostly rate driven)
• YE25 RevPAR growth guidance revised lower to -0.1% to 2.3%; down from 1.5% to 3.5% as reported in 4Q24. Based on 1Q performance, guidance suggests rest of year RevPAR growth of 0.4%
• All companies lowered the high and low ends of their guidance for YE25 (except for Host). The average decrease was 160 bps at the low end and 120 bps at the high end
• Macroeconomic uncertainty, lower inbound international travel, and weaker U.S. government travel were the most cited reasons for reduced RevPAR projections
• Leisure demand softened in March amidst macro uncertainty. Shadow supply (Airbnb and VRBO) performances was also soft in 1Q25
• 1Q25 business transient RevPAR grew 2% to 12% for the major operators. Airlines reported high single-digit business travel revenue growth
• Group revenue growth for 2025 and 2026 is pacing 1% to 7% and 7% to 10% ahead of STLY respectively, with strong citywide pace in San Francisco cited by the REITs
• 1Q25 EBITDA margins improved by an average of 20 bps due to solid RevPAR growth and lower-than-expected expense growth. Tariff and immigration policies remain wild cards for 2025 margins

Download the full summary to stay up-to-date: hotelAVE 1Q25 Hospitality Earnings Summary