Measured growth replaces the post-pandemic surge in global hotels

HVS sees a strategic reset as RevPAR slows and value creation shifts toward repositioning and leadership

HVS’s year-end 2025 global hotel industry review frames the sector as moving from post-pandemic recovery into a more moderated, strategy-driven phase. RevPAR growth continues across most regions but at a slower pace, with widening performance differences between markets and segments. Transaction activity is becoming more selective, favouring value-add opportunities over fully stabilised assets. Across regions, operational innovation and leadership capability are emerging as decisive factors as traditional growth drivers plateau.

Key takeaways

• RevPAR growth is moderating globally: Growth continues but at significantly slower rates, signalling a transition from recovery-led momentum to a more disciplined, strategy-focused operating environment.
• U.S. transactions are shifting toward value-add assets: Deal flow is expected to increase in 2026, driven by lender-owned and repositioning opportunities, with investors focusing on replacement cost and upside rather than current cash flow.
• Alternative revenue streams are gaining importance: With RevPAR flattening in many markets, operators are increasingly exploring non-room income sources such as EV charging, cell towers, and on-site commercial uses.
• Canada shows resilience through domestic and event-driven demand: Strong domestic travel and major events supported nearly 5% RevPAR growth in 2025, with further gains expected despite broader economic uncertainty.
• Latin America offers selective, market-specific opportunities: Performance varies widely, with established Mexican and select South American markets showing durable demand, while infrastructure investment and public-private cooperation remain critical to growth.
• Europe remains investment-active despite slower growth: Modest RevPAR gains and limited supply growth support continued transaction activity, particularly in Southern Europe and value-add assets, while luxury performance may begin to flatten.
• Leadership and talent strategy are becoming core value drivers: As growth slows and portfolios grow more complex, organisations that proactively align leadership, succession planning, and commercial skills are best positioned to sustain long-term performance.

Source: HVS

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