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CEOS CANDIDLY QUESTION THE VALUE OF A HOTEL INVESTMENT.
By DAVID EISEN
The bad news first. U. S. revenue per available room contracted in 2025, decreasing 0.3 % year-over year, according to data released by CoStar. The good news: This year should see an increase— albeit minimal— but like any forecast, subject to change.
So moves the hotel industry— like a Pong ball at the whims of an economy and political climate it can’ t control.
The indeterminate swings are a nuisance for hoteliers that thrive on certainty, but lodging company CEOs, speaking at the Americas Lodging Investment Summit at the JW Marriott Los Angeles L. A. LIVE, offered optimism regardless of the environment.
“ There’ s been a disaggregation between the growth of travel and the growth of economies,” Elie Maalouf, CEO of IHG Hotels & Resorts, said of the last few years. He pointed to the record amount of inbound travel to Europe from the U. S. as example.
Inbound travel to the U. S. is another story. In October, U. S. Travel projected a 6.3 % decline in inbound visits, and preliminary data through year-end 2025 largely confirms that outlook. Total international arrivals are estimated to have fallen from 72.4 million in 2024 to 68.5 million in 2025— a decline of 5.4 %. December followed the pattern seen throughout the second half of the year. Visits from Canada were down 25.1 % year-over-year, while travel from Mexico increased 4.8 % and overseas visitation declined 1.3 %. Though Canada still led all countries in U. S. travel spending at nearly $ 16 billion, the early and sustained decline in visitation reflects deeper challenges that won’ t be fully captured by near-term yearover-year comparisons.
Travel to the U. S. is projected to fall to just 85 % of 2019 levels in 2025.
“ The U. S. is slower,” Maalouf said, citing tariff turmoil, government cutbacks and the government shutdown as three culprits leading to enervated growth rates. He’ s more sanguine on 2026, especially since comps will be demonstrably easier and huge demand generators, highlighted by America250 and FIFA World Cup, will have a propitious impact.
Mit Shah, CEO of Noble Investment Group, which invests in and owns hotels,
Mar / Apr 2026 hotelsmag. com 9