In Q1 2025, RevPAR grew by 2.2%, driven mainly by weather events and the Presidential Inauguration in January, and the Super Bowl in February. However, March RevPAR growth was weaker than expected at 0.8%. Core inflation annualized at 3.0%, slightly down from 3.1% in Q4 2024, but still outpacing RevPAR growth. Luxury and upper-upscale hotel segments achieved the lion share of the RevPAR gains this quarter, again. Despite strong economic fundamentals, hotels, historically a hedge against inflation, are seeing inflation drive up expenses faster than revenue. Overall, squeezing NOIs and, ultimately, hotel values. The new tariffs and volatile trade policies are prompting outlets to lower their growth forecasts for 2025, but still showing growth. This means many hotels will continue to cover expenses but also continue to see shrinking profits.
National
- Travel Demand Shows Volatility Across Border Cities As Security And Fiscal Policies Take Effect
- Tariffs and Turbulence: Navigating Hotel Operations in a Travel Downturn
- U.S. Travel CEO Urges Congress to Back Travel Industry as a Path to Economic Recovery and Growth
- US Government Actions Will ‘Significantly’ Shrink Business Travel
- Hotel Development to Remain Healthy Despite Economic Woes: Hyatt Exec
Alabama
- Historic, Nearly 200-Year-Old Alabama Hotel Opens Its Doors to Guests Once Again
- Cooper’s Hawk Winery and Restaurant to Open First Alabama Location
Kentucky
- Hotel Bourré Bonne Opens in Downtown Louisville Ahead of Kentucky Derby 151
- Ford CEO Goes Under the Hood of Massive Kentucky Plant, Says It's What Trump Is 'Trying' to Do
