CBRE expects inflation to remain higher for longer with the 2025 CPI growth forecast increasing 10 bps to 2.9% and the 2026 forecast increasing 30 bps to 3.0%. ... STR demand rose 5.6% in contrast to the 0.6% decline in lodging demand. STR share of total demand increased again in June to 14.6% compared with 13.9% in 2024 and up from 10.6% in 2019.
Given continued underperformance and elevated macroeconomic concerns, forecasted growth rates were lowered across the top-line metrics: demand (-0.6ppts), ADR (-0.5 ppts) and RevPAR (-1.1 ppts). ... Additionally, as the year has unfolded, we’ve seen rate growth converge closer with demand.
For example, CEOs from Marriott and Hyatt have reported shifts in booking patterns and travel demand. ... Specifically, hoteliers can adjust pricing strategies based on real-time demand by utilizing technology such as advanced forecasting tools.
SUPPLY-AND-DEMAND DYNAMICS AFFECTING HOTEL DEVELOPMENT In 2024, U.S. hotel occupancy remained identical to the 2023 level, while ADR exceeded previous levels. ... Based on available data from STR, the following table illustrates historical supply-growth data, coupled with our forecasts for 2025 through 2028.
The rate side remains strong with a slight downward shift to +1.3% for the year, while the primary reason for muted 2025 performance is demand, now forecasted to grow just +0.5% relative to 2024. ... Tourism Economics now forecasts substantial demand declines from Canada (estimated down 9% YoY for 2025), Mexico, EU countries, and APAC countries in 2025.
Key Takeaways: Economy After 1Q25’s forecast release, CBRE cut its 2025 GDP outlook to 1.3% from 1.9%. ... STRs demand increased 6.0%, well above the 0.3% contraction in traditional hotel demand. STR share of total demand increased again in May to 13.9% compared with 13.2% in 2024.
As leisure demand quickly recovered, corporate and group travel remained below the levels realized before the pandemic through 2023, with corporate travel ultimately becoming a smaller portion of the demand ... Group demand has since recovered, and visitation growth has stabilized to more normalized levels, as Visit Music City forecasts 2.3% growth in visitation over the next several years.
Travel companies including Delta Air Lines, Marriott International, and online travel agency Booking Holdings have withdrawn or revised their 2025 annual forecasts as U.S. demand softens.
Rather, it calls for sharper intelligence, more precise forecasting, and a reassessment of what profitability really means in 2025. ... That new baseline demands smarter benchmarking, more flexible staffing models, and tighter coordination between revenue and operational teams.
Following Memorial Day’s record forecast, AAA is seeing strong demand for road trips and air travel over Independence Day week. ... Best and Worst Times to Travel by Car Holiday Forecast Methodology Travel Forecast In cooperation with AAA, S&P Global Market Intelligence (SPGMI) developed a unique methodology to forecast actual domestic
Yet, market forecasters should keep in mind that those demand gains can be balanced by room supply in a market as well as the event’s accessibility to nearby (but external) markets. ... Assuming that economic and international travel conditions remain favorable in 2026, STR’s models indicate that U.S. markets are forecasted to have sizable monthly ADR premiums across World Cup host cities
Our current demand forecast shows a full recovery beyond 2019 levels by 2027/28. ... tariffs, and the long-term outlook for demand growth, we have prepared the following forecasts for the Manhattan lodging market through 2029.
As a result, our forecast expects RevPAR growth to decelerate significantly to 0.8%. ... despite softened lower-tier demand.
Key Takeaways: - Economy Negative revision post forecast release poses risks to outlook. ... Short-term rental demand grew 6.0% in April again outpacing hotel demand. STRs continued to take share from hotels, with STR demand growing 6.0% compared with a 0.1% increase in hotel demand.
It offers customizable daily cleaning boards organized by zones or room types, supports various clean types, and forecasts housekeeping needs based on reservations. ... In response to growing demand for interoperability, RDP is expanding its open API offerings.
Group business has become a big driver of demand in the absence of the typical leisure and commercial sources. ... As a result, RevPAR is likely to stay stagnant or decline in many markets, as this supplemental group demand is typically lower rated than the leisure- or commercial-transient demand that is usually present
Given Q1 underperformance and elevated macroeconomic concerns, forecasted growth rates were lowered across the top-line metrics: supply (-0.1 ppts), demand (-0.6 ppts), ADR (-0.3 ppts) and RevPAR (-0.8 ... Until consumer confidence improves, however, demand is going to remain softer—especially in the middle and lower price tiers.
as a projected rise in demand for drive-to and regional leisure destinations. ... CBRE’s baseline forecasts do not contemplate an international war or a pervasive recession. CBRE also produces forecasts based on upside and downside scenarios.
According to the study, the U.S, the largest Travel & Tourism sector in the world, is the only country among 184 economies analysed by WTTC and Oxford Economics, forecast to see international visitor spending ... The world’s biggest Travel & Tourism economy is heading in the wrong direction, not because of a lack of demand, but because of a failure to act.
After travel demand collapsed in 2020, many markets saw an aggressive rebound in 2021–2022 driven by “revenge travel”—a surge of pent-up demand as soon as vaccines and lifted restrictions enabled people ... Personal Savings Trends The U.S. personal saving rate offers a macroeconomic lens to evaluate hotel demand.