U.S. Hospitality Market Update: Key Trends and Performance Data

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What’s Next for Hotels in 2025?

Hotel demand is steady—but rising costs and slimmer margins are forcing developers to rethink their next move.

Here’s the latest U.S. hotel performance data and how BASE4 is helping clients adapt in 2025.

📉 Slower Growth, Smarter Development

CBRE now forecasts RevPAR growth of 1.3% in 2025, with:

• Occupancy up 14 bps

• ADR up 1.2% year over year

Urban markets are projected to perform strongest at ~2.8% RevPAR growth, while suburban and small-town markets are closer to 1.3–1.8%.

Urban hotels projected to lead RevPAR growth at 2.8% in 2025. 

~ CBRE 2025 Hotel Outlook

🧭 Where Developers Are Still Winning

🏙️ Urban hotels remain the strongest performers.²

• Upper-midscale to luxury segments remain resilient

• Resort and branded extended-stay assets are investor favorites

• Owners are leaning on speed-to-market and leaner design models

🛠️ BASE4 Helps You Build Smarter

We’re helping hotel developers adapt to tighter market conditions with:

• Modular, traditional, or hybrid delivery options

• Full-scope Architecture, Engineering, MEP, and Interior Design

• Designs tailored for select-service, extended-stay, and dual-branded properties

• Speed, efficiency, and cost savings baked into the process

Turning forecasts into fast builds — see how BASE4 makes it happen.

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BASE4 is one of the only A/E firms actively using proprietary AI tools to optimize building design, documentation, and delivery — making us the most progressive and tech-enabled partner in the built environment.

 

 

Thank you,

Blair Hildahl
BASE4 Principal
608.304.5228
BlairH@base-4.com

Source:

2.CBRE Investor Survey 2025