Given continued underperformance and elevated macroeconomic concerns, forecasted growth rates were lowered across the top-line metrics.

• demand (-0.6ppts)
• ADR (-0.5 ppts)
• RevPAR (-1.1 ppts). 

Similar adjustments were made for 2026: demand (-0.5 ppts), ADR (-0.3 ppts) and RevPAR (-0.7 ppts). 

“Unrelenting uncertainty and inflation, coupled with tough calendar comps and changing travel patterns, have caused lower demand,” said Amanda Hite, STR president.

“Additionally, as the year has unfolded, we’ve seen rate growth converge closer with demand. We expect little change in the economic outlook over the next 18 months, but we are optimistic that once trade talks have concluded and the impact of the budget reconciliation bill comes to fruition, hotel performance will recover.”

"The slowing U.S. economy should absorb the effects of tariffs without tipping into a recession,” said Aran Ryan, director of industry studies at Tourism Economics.

“The current environment—characterized by slowing consumer spending, reduced business capital spending, and declining international visitation—will transition to one boosted moderately by tax cuts and less policy uncertainty as we look to 2026.”

“While our GOPPAR forecast remains unchanged from the previous revision, GOP margins were revised down 0.3ppts for 2025 and 2.3ppts for 2026, mainly due to a potential increase in expenses, particularly F&B,” Hite said. 

CoStar Group is a global leader in commercial real estate information, analytics, online marketplaces, and 3D digital twin technology. Founded in 1986, CoStar Group is dedicated to digitizing the world’s real estate, empowering all people to discover properties, insights, and connections that improve their businesses and lives.

CoStar Group’s major brands include CoStar, a leading global provider of commercial real estate data, analytics, and news; LoopNet, the most trafficked commercial real estate marketplace; Apartments.com, the leading platform for apartment rentals; and Homes.com, the fastest-growing residential real estate marketplace. CoStar Group’s industry-leading brands also include Matterport, a leading spatial data company whose platform turns buildings into data to make every space more valuable and accessible, STR, a global leader in hospitality data and benchmarking, Ten-X, an online platform for commercial real estate auctions and negotiated bids and OnTheMarket, a leading residential property portal in the United Kingdom.

For more information, visit CoStarGroup.com.