The article provides an in-depth analysis of the hotel and travel industry's performance in the second quarter of 2025, with executives from major hotel chains discussing macroeconomic challenges, demand trends, and outlooks for the remainder of the year. Key concerns include weak government and international travel demand, soft group bookings, and economic uncertainty. However, executives express optimism for the third and fourth quarters due to favorable holiday shifts, improved consumer confidence, and a more stable macroeconomic environment. Industry leaders highlight positive developments such as tax reform, stronger corporate profits, and significant investments in AI and infrastructure. Specific events like the Paris Olympics, Republican and Democratic conventions, and the return of Conexpo-Con/Agg are cited as catalysts. Several companies, including Marriott, Hilton, Hyatt, Choice Hotels, MGM Resorts, Expedia Group, Host Hotels & Resorts, Pebblebrook Hotel Trust, Park Hotels & Resorts, Apple Hospitality REIT, RLJ Lodging Trust, Sunstone Hotel Investors, and Summit Hotel Properties, provide detailed guidance on revenue per available room (RevPAR) growth, booking trends, and outlooks for 2025 and 2026.

Major hotel companies expanded their brand portfolios at a 7 percent compound annual growth rate (CAGR) and increased loyalty program memberships by 15 percent over the past decade, according to CBRE. RevPAR grew at a 1.8 percent CAGR from 2019 to 2024, a 20 basis point improvement from 2014 to 2019. Key brand families including Choice, Hilton, Hyatt, IHG Hotels & Resorts, Marriott, and Wyndham doubled their portfolios to an average of 24 brands each between 2014 and 2024. However, brand proliferation has not consistently driven RevPAR growth, with the fastest-growing brand family recording a median RevPAR CAGR of just 0.3 percent. Some brand additions, such as glamping and all-inclusive resorts, expanded redemption options for loyalty points valued at over $12 billion, while others like middle-tier and extended-stay brands grew by over 40 percent in the past five years and may have cannibalized existing properties. RevPAR growth was outpaced by inflation, which rose from 1.6 percent to 4.2 percent, leading to real gains that declined by 10.9 percent. The luxury segment saw a widening RevPAR spread of nearly seven percentage points from 2014 to 2019, with the strongest brand achieving a 41 percent cumulative RevPAR premium. Upper-midscale hotels, lacking resort fees, delivered the highest RevPAR CAGR at 2.3 percent from 2019 to 2024, while mid-tier and economy chains saw declining growth and occupancy, with property closures expected to reduce oversupply and improve future performance.

Major hotel companies expanded their brand portfolios at a 7 percent compound annual growth rate (CAGR) and increased loyalty program memberships by 15 percent over the past decade, according to CBRE. RevPAR grew at a 1.8 percent CAGR from 2019 to 2024, up 20 basis points from 2014 to 2019. Brand families such as Choice, Hilton, Hyatt, IHG Hotels & Resorts, Marriott, and Wyndham doubled their portfolios to an average of 24 brands each between 2014 and 2024. While brand proliferation increased loyalty memberships, it did not consistently drive RevPAR growth, with the fastest-growing brand family recording a median RevPAR CAGR of just 0.3 percent. Some brand additions, like glamping and all-inclusive resorts, expanded redemption options for loyalty points valued at over $12 billion, while others, such as middle-tier and extended-stay brands, grew by over 40 percent in the past five years and may have cannibalized existing properties. RevPAR growth was outpaced by inflation, which rose from 1.6 percent to 4.2 percent, leading to real gains that declined by 10.9 percent despite a 9.3 percent nominal increase. The luxury segment saw a widening RevPAR spread, rising to nearly seven percentage points from five points between 2014 and 2024, with the strongest luxury brand’s cumulative RevPAR premium increasing to 41 percent from 29 percent. Upper-midscale hotels, lacking resort fees, attracted stable demand and achieved the highest RevPAR CAGR at 2.3 percent from 2019 to 2024. Mid-tier hotels with complimentary breakfast saw higher occupancy and double-digit RevPAR growth, while midscale and economy chains experienced declining RevPAR growth and property closures, expected to reduce oversupply and improve future performance.

Marriott reported strong international growth in the second quarter of 2025, with international revpar up more than 5% and a net addition of 17,300 rooms, bringing the global hotel system to over 9,600 hotels and 1.763 million rooms. The company attributed growth to new signings, with nearly 32,000 rooms added, 70% of which were in international markets. Key developments include the acquisition of the CitizenM brand and the launch of the Series by Marriott collection brand, with a founding deal signed in India with Concept Hospitality Private Limited (CHPL). Marriott expects full-year 2025 net growth to be close to 5%, matching peers. The CitizenM brand is expected to expand faster under Marriott’s ownership, with new openings in Dublin, London, and Washington DC, and a conversion project in London’s Saville Theatre set to open in 2028.

Jenni Benzaquen, a senior vice president at Marriott International with over 25 years of experience in luxury hospitality, has been appointed as Senior Vice President of Residential, Global at Rosewood Hotel Group, effective 1 September 2025. She will report to the Group’s Chief Operating Officer and focus on quality growth, operational excellence, and community connections for Rosewood’s residential business. Benzaquen previously led Marriott’s upper- and ultra-luxury brands, including The Ritz-Carlton, St. Regis, Bvlgari Hotels & Resorts, and the Ritz-Carlton Yacht Collection, and has a background in global brand strategy and commercial positioning.