3Q25 Hospitality Earnings Summary

hotelAVE 3Q25 Hospitality Earnings Summary is now available! We’re thrilled to share positive insights into the hotel industry. A glimpse:

3Q25 U.S. RevPAR change for public companies averaged -1.8%; 64% of the companies that reported had RevPAR declines Y/Y. No 2026 guidance was provided
Full year RevPAR growth guidance tightened to 0% to 1.0%; down slightly from -0.2% to 1.8% as reported in 2Q25. 4Q25 global RevPAR guidance for the public operators implies growth of 0.8% to 1.8%
The government shutdown made the public companies hesitant to raise U.S. RevPAR guidance amongst the continued economic uncertainty, lower inbound international travel, and weaker U.S. government travel
Leisure demand softened this quarter; Hyatt, Marriott, and Hilton reported leisure revenue changes of 1.6%, 1%, and 0%, respectively. Luxury consumers showing resiliency; luxury RevPAR up 6% for Hyatt and 4% for Marriott
3Q25 business transient RevPAR change was 0% to -1% for the major operators. Like 2Q25, Hilton cited government spending declines, weaker international inbound business, and macroeconomic uncertainty as the main reasons for BT decline Y/Y
Group revenue on the books (OTB) for 2026 is pacing 5% to 8% up vs STLY
2Q25 EBITDA margins declined by an average of 137 bps. RevPAR declines were offset by lower-than-inflation wages and benefits