U.S. hotel market is expected to experience a slight revenue increase, driven by international visitation, group demand, and business travel.
Global Travel & Hospitality Outlook: Key Updates You Shouldn’t Miss (April 2025)
The travel and hospitality industry is buzzing with shifts from market volatility to new hotel openings across the globe. Here’s a quick roundup of the latest trends, forecasts, and developments to keep you informed.
1. Stock Market Dip Impacts Lodging Sector
After a short-lived rally, major U.S. stock indices dropped:
• DJIA: -1,015 points
• Nasdaq: -4%
• S&P 500: -3.5%
Lodging stocks followed suit, with big names like SHCO (-12%), VAC (-11%), and RLJ (-9%) leading the losses. SOND was the only one to rise, gaining +12%.
BofA Securities warns that lodging REITs and gaming operators face higher earnings risks due to their operating leverage, especially if GDP drops further.
2. CBRE 2025 Hotel Outlook: Global Travel Set to Rise
The CBRE 2025 Global Hotel Outlook predicts:
• U.S.: RevPAR expected to rise by 2% in 2025, driven by international travel, group bookings, and business travel.
• Latin America: Strong recovery with Costa Rica (+13%), Mexico (+7%), and Colombia welcoming 6M tourists.
• Europe & Middle East: Steady growth, especially in Dubai (+9%) and Abu Dhabi (+26%) tourism.
• Asia-Pacific: On track to exceed pre-pandemic travel levels by 2.5% in 2025.
3. Hotel Investment Trends
Despite a decline in U.S. hotel investments (-11.5%), global demand is up +16%, and cross-border capital surged +55%. With a potential 75-bp rate cut on the horizon, hotel investment volumes may pick up again in the second half of 2025.
4. New Projects in the Pipeline
• Florida: Margaritaville Vacation Club to open a 151-suite resort near Disney by 2027.
• Pennsylvania: stayAPT Suites expanding into Lancaster County with a new 94-room hotel.
• Nashville: New 204-room boutique hotel planned for Pie Town, offering rooftop and wellness spaces.
• Jamaica: Casino gaming debuts in November with Princess Grand Jamaica—509 suites, 3 pools, and 9 restaurants.
5. Major Business Moves
• KSL Capital Partners closed a new $1.44B tactical opportunities fund—far exceeding expectations.
• Duetto acquired HotStats, integrating profitability benchmarking into its hotel revenue platform to boost efficiency and insight.
Traveltaf Insight:
Despite market volatility, the global hospitality sector is pushing forward with recovery and expansion. From timeshares to boutique hotels, the industry is positioning for a travel boom in 2025.