Budget season in hospitality can feel like trying to land a plane in fog—numbers are everywhere, and every decision impacts your property’s future. That’s where the Budgeting Playbook comes in as a clear, actionable guide to help you build a strategy-driven budget that aligns market realities with operational goals.
The One Big Beautiful Bill Act (OBBB) has fundamentally changed the landscape for real estate investment in America—permanently enshrining the Qualified Opportunity Zone (QOZ) framework and expanding the horizon for hotel mixed-use development. For developers, investors, lenders, and deal sponsors, the new OBBB regime offers unmatched certainty, flexibility, and opportunity—but it also demands rigorous compliance and strategic planning. Here’s a deep-dive narrative for industry professionals charting the future of hospitality-led community reinvestment.
I used to treat ADR and RevPAR as gospel—twin pillars holding up the temple of “successful” hotel management. Then a six‑year‑old shuffled into our lobby, laced his fingers through Santa’s glove, and whispered that we were the only place he’d get to meet the Big Guy this year. In that moment another KPI muscled its way onto my dashboard: emotional equity.
Chain hotel websites are at risk. Tools like ChatGPT and Google Gemini can now summarize accommodation options instantly, bypassing brand.com sites in favor of fast, direct answers and eliminating the need for potential guests to click through a dozen links.
The first half of 2025 witnessed a complex interplay of geopolitical shifts, natural disasters, and continuing global challenges that led to significant whiplash in the U.S. stock market and unusual swings in the bond market. The return of Donald J. Trump to the U.S. Presidency has led to a reigniting of trade tensions, particularly with China, that are impacting global commerce. Furthermore, with peace talks proving unsuccessful thus far, wars in Ukraine, Gaza, and Sudan are each entering their third or fourth year. In May, India and Pakistan engaged in a brief but intense military conflict, marking their most serious escalation in decades. During June, the Iran–Israel War, also referred to as the Twelve-Day War, was an armed conflict during which Israel launched surprise attacks on key military and nuclear facilities in Iran, culminating with the U.S. taking offensive action by bombing three Iranian nuclear sites. Finally, during the first half of 2025, the U.S. experienced a record $126 billion in losses from natural disasters, including California wildfires, Midwest tornadoes, and Mississippi River floods.
In the ever-evolving landscape of global trade, tariffs have emerged as a formidable challenge for hoteliers. As these financial barriers reshape the market, understanding their implications is crucial for those in the hospitality industry. Hotel giants have already noted the possible shifts in revenue due to trade policies.
At Hilton Anaheim, we operate with one goal in mind: to provide our guests with an experience that feels equal parts comfortable and distinctly local. We understand our guests arrive in the heart of Orange County with expectations—whether they are here on a family vacation, attending a major convention, or simply seeking a peaceful escape. We considered these different scenarios when planning our renovation so we could meet and exceed those expectations in every way possible.
Summer is just at the half-way point, but financial reporting for many borrowers for second quarter is still around the corner. Given market volatility, tariffs and other financial burdens – initial indicators suggest that companies are likely straining if not flailing under the weight of economic conditions. What this means for borrowers and lenders is that second quarter reporting could be underwhelming, if not disastrous – putting multiple borrowers in default under their loans.
As AI revolutionizes how people plan and book travel online, the algorithms determining which content surfaces in AI-generated summaries are beginning to mirror the dynamics of digital advertising. This shift, however, will lead to a future where advertising plays a less dominant role than ever before.
Tucson’s hotel supply and investment interest have evolved in the past few years. From the addition of boutique hotels in the downtown area to new extended-stay options near hospitals and office parks, the city is experiencing one of its most dynamic hotel development cycles in decades. Over the past several years, many economy and midscale hotels have been converted to other uses, including multi-family and affordable housing, as well as shelters and transitional housing; this trend has been prevalent in several major markets, including nearby Phoenix. On the other hand, high-end hotels have been either built new or converted from other uses.
With the recent change in the makeup of the National Labor Relations Board (NLRB), many employers are asking whether there are any labor relations issues they should be preparing for to best position their businesses to operate with maximum flexibility and achieve organizational goals. Even with an NLRB that, by all appearances, will be more employer friendly than its predecessor, the answer is yes. This is because unions may likely turn to certain tactics to add unrepresented employees to existing bargaining units in the workplace.
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.
The Oregon Coast is a popular drive-to destination market that thrives on tourism. The coast offers a variety of vacation spots, from large, bustling tourism hubs to more rural destinations with small-town charm. Home to nearly 30 cities and towns, the coastal region is divided into three major sub-regions: the Northern and Central sub-regions feature the major tourism destinations, including Newport, Lincoln City, Cannon Beach, and Astoria, while the Southern sub-region relies primarily on travel to state parks. The coast’s proximity to Oregon’s major commercial centers, including Portland, Salem, Eugene, and Medford, provides the area with reliable demand for hotels. This demand peaks from May through October given the mild weather and the multitude of popular outdoor recreational activities during this period.
For small business owners, facing an Americans with Disabilities Act (ADA) lawsuit can feel like an uphill battle. These lawsuits often allege accessibility violations, and the costs of litigation can be daunting, even for businesses striving to comply with ADA regulations. However, a recent victory in the case of Orlando Garcia v. Zarco Hotels Inc. (Case No. 21STCV00023), defended by Stuart Tubis, Esq. and Martin Orlick, Esq., provides a roadmap for defendant businesses to not only fight these lawsuits but also recover significant attorneys’ fees when they prevail. It takes the right facts, the right lawyer and a genuine commitment to fight for what is right.
With expectations of limited revenue growth in 2025, U.S. hoteliers are focusing on all expense categories within their hotels. Early indications are that property operators are doing a commendable job managing the more controllable expenses within their operated departments, however, containing the undistributed department expenses is proving to be more of a challenge.
It's no secret that Nashville has emerged as a top-tier destination for tourism, commerce, and conventions. Tourism exploded as the city’s popular music-related attractions gained national attention and social groups flocked to the Broadway Historic District to enjoy the array of venues named for a multitude of country music stars. At the same time, corporate relocations and investment flourished as the city’s business-friendly environment, relatively low cost of living, and strong quality of life attracted many firms, including major technology companies like Oracle and Amazon. During this period, hotel demand (and subsequently hotel supply) expanded rapidly, kickstarted by the opening of the Music City Center convention facility in 2013. Through 2019, Nashville hotel occupancy levels soared, and developers were unable to build hotels fast enough to keep up with demand.
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.
In hospitality, seasonality isn’t just a footnote in the budget—it’s often the main storyline. Whether it’s summer vacationers filling oceanfront suites, fall group travel spiking occupancy, or citywide events creating compression across an entire market, these seasonal surges are what make or break performance.
Located just south of Orlando, Kissimmee’s strategic position in Central Florida offers convenient access to surrounding commercial, leisure, and convention attractions. Traditionally a supporting player in the region’s tourism and business sectors, the city is emerging as a commercial and leisure destination in its own right, with planned developments anticipated to elevate its profile in hospitality and beyond.
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.