financeLodging Magazine··1 min·For: Owner, GM, Revenue, Investor
Profitability Under Pressure: 2025 U.S. Hotel Performance
As the U.S. hotel industry enters 2025, slowing RevPAR growth and rising operational expenses are forcing owners and investors to shift focus toward protecting bottom-line profitability and net operating income.
Key Takeaways
- 1Expect slow RevPAR growth of 1.4% to 2.0% in 2025 as the post-pandemic travel surge stabilizes and economic uncertainties persist.
- 2Monitor rising operational costs, especially labor and insurance, which are outpacing revenue growth and squeezing GOPPAR margins.
- 3Focus on net operating income (NOI) stability to maintain asset valuation, as buyers focus on expense management over top-line growth.
Source: Lodging Magazine
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