Industry Updates

Kelsey Fenerty, Manager of Analytics at STR, gives a quick overview of the global market forecast. 

An extended version of our Global Market Forecast Assumptions analysis can be found here.

U.S. hotel performance data for 8-14 June came in lower than projected with a third straight week of hotel demand declines at a time when the early-summer travel season was expected to lift performance. 

Like any time when increases or decreases begin to form a trend, it’s important to go beyond national averages and dig deeper into the market segments as the story is not the same across the board.  

Analysis by Hannah Smith

Amid ongoing macroeconomic pressures, waning consumer confidence, and shorter booking windows, hotel performance for the upcoming Fourth of July holiday is drawing more scrutiny than in past years. Industry analysts are watching closely to gauge how well the sector navigates this important summer leisure travel period. Fortunately, our forward-looking data offers encouraging signs and reasons for optimism.

This past weekend, the United States kicked off its duties as host of the 2025 FIFA Club World Cup (CWC), a precursor to next year’s World Cup, which will be hosted by the U.S., Canada and Mexico.  

This year’s 63-match tournament kicked off in Miami on 14 June and culminates with the title game in New Jersey’s MetLife Stadium on 9 July. Overall, matches will be played in a total of 11 U.S. markets: 

April performance across the Asia Pacific hotel industry was positive as 10 of the region’s 16 largest countries grew occupancy, average daily rate (ADR) and revenue per available room (RevPAR). In fact, all but three countries—China, Singapore and Thailand—experienced RevPAR gains. 

Market Forecasts, produced by STR and Tourism Economics, provide you with the insights needed to anticipate future performance. 

U.S. Topline

The top-line U.S. RevPAR forecast has been downgraded 80-basis points to +1.0%. The downgrade is driven by a combination of calendar shifts, weakening macroeconomic indicators, and uncertainty caused by erratic tariff implementation and large-scale federal job losses as well as increasingly soft international inbound travel.

Market Forecasts, produced by STR and Tourism Economics, provide you with the insights needed to anticipate future performance. 

Europe short-term outlook: 

Aggregated growth in revenue per available room (RevPAR) for STR’s 31 European forecast markets is projected at 1.7% for 2025, a downgrade from the 2.4% increase projected in February 2025. 

With global travel trends shaped by a mix of factors, the upcoming months feel more unpredictable when it comes to traveler confidence and the impact on hotel performance. With the potential for lower international inbound arrivals emerging as a key concern, STR conducted a projection to assess the possible impact on U.S. hotel demand.

Analysis by Chris Klauda

In March 2025, hotels across the Middle East and Africa region experienced mixed performance impacted by the month-long observance of Ramadan, which took place almost exclusively in March compared to last year when the observance began in the middle of the month. 

Analysis by M. Brian Riley

Driven by the surge in post-pandemic travel, overtourism became a major talking point across Europe in 2023 and continued to dominate discussions into 2024. With a year-plus of data now available, we can assess the effectiveness of various countermeasures and their impact on hotel performance.