Overview

• Overall occupancy fell 1.4% year-over-year in Q2 even as a 1.0% rise in ADR left RevPAR down about 0.5%.
• Inbound international visitation dropped 3.4% in June, widening the travel imbalance and dragging on room demand.
• Short-term rentals increased their market share to 14.6% in June, driven by a 5.8% RevPAR gain that outpaced traditional hotels.
• CMBS issuance plunged from $2.9 billion in June 2024 to $0.9 billion in June 2025 as rates rose to 7.8% and credit spreads widened 50 basis points.
• Hotel operating profits grew 1.4% in May but margins contracted by 0.1 percentage point and are expected to stay under strain into 2026.