Overview

• Demand growth projections were cut by 0.6 percentage points in 2025 and 0.5 points in 2026 at the 17th Annual Hotel Data Conference
• Average daily rate forecasts were lowered by 0.5 points for 2025 and 0.3 points for 2026, while RevPAR growth was trimmed by 1.1 and 0.7 points respectively
• GOP margins were reduced by 0.3 points for 2025 and 2.3 points for 2026 even as the GOPPAR forecast remained unchanged amid anticipated expense pressures
• Persistent inflation, tough year-on-year comparisons and shifting travel patterns were identified as primary factors behind the weaker demand outlook
• CoStar and Tourism Economics said any sustained recovery hinges on successful trade negotiations, enactment of budget reconciliation measures and reduced policy uncertainty by next year