Back To News/PR Index | 
| 
| hotelAVE Hospitality Dashboard & Insights 2Q25 STR revised 2025 RevPAR down to -0.1%, which would be the first negative RevPAR year since 2020 pandemic. Other forecasters are coalescing around 1%+/- RevPAR growth for 2025 and 0.8-2.0% for 2026. Expect continued downward revisions. Public companies are reducing full year guidance as well. Room night demand growth in the highest rated segments decelerated in 2Q25 vs STLY. Expect a weak 3Q25 and stronger 4Q25 vs STLY. Borrowing rates remain stable since last quarter and banks, debt funds and CMBS remain the most active sources for hotels. While Sellers continue to test the sales market, most continue to opt for refinancing due to pricing gaps in transaction markets. Rooms under construction continues to decrease, athough several markets have larger backlogs of projects in final planning (permitted but not yet fully capitalized). In addition, new apartments and condominium projects are potential sources of shadow supply, particularly in seasonal/resort markets. Flex/Flow to GOP was negative in most markets in 2Q25. Weaker 2Q25 top line growth in combination with labor cost increases in excess of inflation drove margin erosion. About hotelAVE
Driven by our passion to achieve outcomes that exceed expectations, we leverage our proprietary database, careful research and a firm understanding of our client’s goals to deliver innovative solutions, above-market results, and improved performance. Founded in 2003 by Michelle Russo, named one of Lodging Magazine’s most influential women in hospitality, hotelAVE has grown into a 48-person team that seeks to have a meaningful impact on every project and asset we work with. Since inception, we have a track record of success and innovation, advising more than 1,000 hotels and over $50 billion in hotel real estate across North America, Latin America, and Europe. hotelAVE Via Social Media: Facebook | X/Twitter | LinkedIn Company
Contact:
|
