In our world of perpetual motion, paradoxes are no longer surprising. The health crisis once led us to believe there would be a lasting post-Covid impact on the desire to travel. And while that wave may have temporarily receded, it is far too powerful to dissolve into an ocean that suddenly stands still.
In 2025, the national lodging market has continued to demonstrate resilient performance, maintaining strong average daily rate (ADR) and revenue per available room (RevPAR) metrics despite flat occupancy growth. Compared to 2023 and 2024, ADR and RevPAR have remained near record levels, driven by solid group and business travel in primary markets, even as some leisure markets began to stabilize or soften. National occupancy remained unchanged from 2023, but overall hotel revenues have continued to grow modestly year over year. These trends suggest a market that has largely stabilized following the disruptions of the pandemic era. Nevertheless, the high cost of debt and capital, coupled with elevated construction costs, continues to weigh heavily on new hotel development activity. As a result, while the underlying performance environment remains favorable for development in theory, actual construction has been subdued, with the supply growth forecast for 2025 falling well below pre-pandemic averages.
Having worked in the hotel business for over four decades, I know most people think the numbers are the “hard” part of hospitality. There’s a common belief that the financials are best left to professionals who can sort out the complex interplay between the different departments of a hotel. It’s just too challenging and complicated for anyone who didn’t go to accounting school.This idea is just a myth—one you can bust wide open with this Podcast Series. I have used Notebook LM to read my writings and magically turn them into a discussion - Just For You!
Recently I was reading some McKinsey and Google studies about “the effectiveness of marketing” and CMO/CEO issues. It’s a recurring boardroom drama: CMOs defending budgets while CFOs quietly (or not-so-quietly) ask for cuts. And it’s almost always followed by the same question: “What’s the ROI of marketing anyway?” (Random note: It would be interesting to put a percentage of all brand ads into the balance sheet as brand equity).
Today's challenging capital environment has created an unexpected opportunity: a surge in land offerings for ground-up hotel and resort development. While sellers may face financial pressures that drive these offerings, buyers confront elevated construction and capital costs that fundamentally reshape land valuations. This dynamic often stems from internal organizational changes that forces land sales yet creates a paradox. With both cost of capital and construction expenses expected to remain elevated, land values have declined significantly from previous peaks.
Each year, hotel budget season brings familiar rituals: department meetings, endless spreadsheets, and the perennial push to beat last year’s numbers. But across boardrooms today, leading hoteliers are asking a different question: “How did we perform—compared to the ones who matter most?”
Since early 2025, the U.S. president has been making good on a campaign promise that many observers expected to be watered down or scrapped. Market players are now left guessing whether the tariffs — which have reached as high as 145% on Chinese imports — represent a firm policy shift or merely a bargaining tool.
The hotel industry is going through a thorough transformation, which requires a new approach from owner representatives. In this article we look at what these industry changes mean for next-generation representation, how owner attitudes and requirements are evolving and which areas require special attention from representatives.
The UK government’s April 2025 increase in the National Living Wage—from £11.44 to £12.21 per hour—isn’t just a regulatory update. It’s a fundamental shift in the economics of hospitality. Labour costs are rising sharply, and profitability is under pressure. But the impact isn’t uniform. Some cities are struggling. Others are adapting. A few are even thriving.
What do hotel operations, outstanding guest experience, and long-term success as a hotel business have in common? None of these can be sustained without sound financial management. Understanding the key financial statements is the foundation on which any hotel owner, general manager, or department head can base their strategy. Without it, hoteliers risk missing revenue opportunities and financial red flags.
At first glance, the hotel industry in the United States seems to be climbing back. Total revenue per available room (TRevPAR), gross operating profit per available room (GOPPAR), and payroll per available room (PayPAR) have all posted year-over-year gains. But peel back the layers, adjust for inflation, and a different picture emerges—one where progress is slower, margins thinner, and true recovery still out of reach.
Today’s hotel guests are more informed and selective than ever. With unprecedented access to reviews, websites, and social media, travelers rely heavily on public sentiment when choosing where to stay. In fact, 89% of travelers say reviews influence their booking decisions. In a market defined by transparency and comparison, it is critical for hotel businesses to stand out.
Hospitality and leisure (H&L) dealmakers began 2025 with cautious optimism, but continued volatility in capital markets and trade policy has forced a reassessment of growth strategies. While the volume of large, transformative deals remains subdued, targeted M&A is providing operators with opportunities to adapt portfolios, sharpen strategic focus and scale digital capabilities. For well-capitalized buyers, current conditions offer an opening to acquire differentiated assets at favorable terms.
Otelier today announced the official launch of the next generation of TruePlan, its modern budgeting and forecasting platform, redesigned for hotel businesses looking to move beyond spreadsheets, outdated tech or legacy tools and accelerate financial planning cycles. Users will discover a completely new user interface that delivers a modern technology experience, notably more innovative than other industry solutions. With a suite of powerful enhancements, TruePlan now delivers a faster, more intuitive way for hotel groups to plan, collaborate, and execute their financial strategies – across dozens or hundreds of properties.
The hospitality industry has faced numerous challenges over the past few years, from the impacts of the COVID-19 pandemic to rising interest rates and, most recently, the consequences of immigration policies and tariffs. Despite these headwinds, recent data indicate a promising upward trend in Small Business Administration (SBA) loans for hotels in 2025. This increase reflects renewed investor confidence, resilience in the limited-service hotel market, and the ultimate need to transact.One of the major drivers in the increase in SBA loans is the resilient economy. The economy, despite tariff concerns, continues to grow, and the Consumer Price Index (CPI) is waning, aided by falling gasoline prices in particular. Many expect the U.S. economy to see a balanced expansion in 2025. This modest growth is anticipated to be driven by consumer spending, productivity gains, and easing financial conditions, as the latest low CPI figures may support an interest rate adjustment soon. A large part of the consumer spending is expected to stem from domestic travel.This resilient economy is bolstering the tourism industry well, as consumers continue to focus on traveling. A strong summer vacation season should foster a new wave of positive momentum among investors and consumers. This trend began with the early Memorial Day holiday weekend, which illustrated the third-highest travel numbers in recorded history, per STR. The current landscape is beneficial for hoteliers and SBA lenders alike.With stabilizing interest rates, many SBA lenders are re-entering the hotel lending space and are ramping up activity. Regional banks continue to be reliable providers of first-mortgage debt in local markets where their understanding of unique conditions gives them a competitive edge. The surge in SBA-backed financing signifies a robust rebuilding phase for hotels across the nation. It enables hotel owners to enhance their facilities, adopt innovative amenities, and manage cash flow effectively. Furthermore, increased access to capital supports new hotel startups and the expansion of existing properties, boosting employment and local economies.As 2025 progresses, the trend of rising SBA loan volumes for hotels is expected to continue, driven by ongoing industry recovery, consumer demand, and supportive lending policies. With increased access to funds, hotel businesses are better positioned to innovate, expand, and serve travelers. Stakeholders should stay informed about evolving financing options to leverage opportunities for growth and resilience in the competitive hospitality marketplace.
It’s been a buoyant cycle for hotels in Ireland: long, sustained periods of rising demand, and either constrained supply, or new supply that has been easily absorbed. Transactions have also been strong on the back of these favorable dynamics.
In a rapidly shifting travel landscape, hotels cannot afford to rely on gut instinct when assessing demand for their product. To remain competitive, knowledgeable, and prepared, today's top operators employ hotel demand management, which unites the methods of demand forecasting and market intelligence.
AVaStar has published a free resource to help hotels and event venues better understand where their AV operations are falling short — and what can be done about it. “Why AV Operations Are Overlooked” is now available for download by clicking here, and it is the ideal resource to help attendees of HITEC Indianapolis better prepare for shopping the show next week.
Lately, it feels like nearly every conversation I have comes back to how fast AI is moving—and how easily we can get swept up in it. In an industry that thrives on personal connection, it’s worth asking: What does all this tech actually do for the people who make hospitality what it is?
Having worked in the hotel business for over four decades, I know most people think the numbers are the “hard” part of hospitality. There’s a common belief that the financials are best left to professionals who can sort out the complex interplay between the different departments of a hotel. It’s just too challenging and complicated for anyone who didn’t go to accounting school.This idea is just a myth—one you can bust wide open with this Podcast Series. I have used Notebook LM to read my writings and magically turn them into a discussion - Just For You!