Our hotelAVE Hospitality Dashboard 2Q25 is now available!
- STR revised 2025 RevPAR down to -0.1%, which would be the first negative RevPAR year since 2020 pandemic. Other forecasters are coalescing around 1%+/- RevPAR growth for 2025 and 0.8-2.0% for 2026. Expect continued downward revisions. Public companies are reducing full year guidance as well.
- Room night demand growth in the highest rated segments decelerated in 2Q25 vs STLY. Expect a weak 3Q25 and stronger 4Q25 vs STLY.
- Borrowing rates remain stable since last quarter and banks, debt funds and CMBS remain the most active sources for hotels. While Sellers continue to test the sales market, most continue to opt for refinancing due to pricing gaps in transaction markets.
- Rooms under construction continues to decrease, although several markets have larger backlogs of projects in final planning (permitted but not yet fully capitalized). In addition, new apartments and condominium projects are potential sources of shadow supply, particularly in seasonal/resort markets..
- Flex/Flow to GOP was negative in most markets in 2Q25. Weaker 2Q25 top line growth in combination with labor cost increases in excess of inflation drove margin erosion.
Download the full summary to stay up-to-date: hotelAVE Hospitality Dashboard 2Q25
