4Q25 Hospitality Earnings Summary

hotelAVE 4Q25 Hospitality Earnings Summary is now available! A glimpse:

4Q25 U.S. RevPAR for public companies declined -0.2%; while REITs that have more luxury and upper upscale hotels averaged 2.1%
2026 RevPAR growth guidance ranged from -2.0% to 4.0%. C-corps (especially those tied to the economy and midscale segments) are at the low end and REITs at the upper end of the range
Most of the public companies reported before the macro events in Iran and Mexico transpired at the end of February and elevated gas prices. These events will likely have negative forward implications on international inbound travel and favorable impact for U.S. leisure drive to markets
Leisure revenue increased globally in 4Q25; Hyatt, Marriott, and Hilton leisure revenue grew 6%, 4%, and 2.3%, respectively. Luxury transient RevPAR up 9% and 10% for Hyatt and HOST
4Q25 business transient RevPAR change was -3% to -1% for the major operators. Hilton and Marriott attributed this decline to the 43-day U.S. government shutdown
Group revenue on the books (OTB) for 2026 is up an average of 5% vs STLY – mostly ADR driven
4Q25 EBITDA margins improved by an average of 91 bps. Lower-than-inflation wages and benefits in 4Q, via operational efficiencies allowed for margin retention at most of the REITs
Capital expenditures and transactions continue. REITs continue to sell non-core assets and invest in renovations and meeting space expansions. Park to sell 10 non-core assets in 2026