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LODGING COMPANIES FACED HEADWINDS IN Q2. COULD THEY KEEP BLOWING?
By DAVID EISEN
H
ilton CEO Chris Nassetta called his company’ s second quarter“ noisy.” It turns out, all the racket was in the numbers: Global RevPAR was down 0.5 % versus the same time a year ago, while U. S. RevPAR decreased 1.5 % against the same period last year.
To hear it from the notoriously optimistic Nassetta, Washington, D. C., finally made an injurious mark on performance, but he remained hopeful— even bullish— moving forward.“ Over the intermediate term, I’ m very optimistic about a more favorable regulatory environment, certainty on tax reform [ and ] expected settling down on global trade policy,” he said during the company’ s earnings call. In addition, he cited healthy corporate profits and investment in AI-related core infrastructure“ that should accelerate economic growth and unlock meaningful increases in travel demand.”
Full year 2025 system-wide RevPAR is projected to be flat to an increase of 2 %.
Hilton opened 221 hotels in the quarter totaling more than 26,000 rooms, representing net unit growth of 7.5 %. Its most important opening was Waldorf Astoria New York, which after some eight years and two separate owners reopened in July. Meanwhile, in Q2, Hilton opened its first Curio Collection all-inclusive in the Dominican Republic— Zemi Miches Punta Cana All-Inclusive Resort, Curio Collection by Hilton. Hilton’ s development pipeline now stands at more than 510,000 rooms. It announced plans for Waldorf Astoria projects in destinations including Helsinki, Bali and New Delhi and also signed the first of its NoMad hotels in Singapore and Detroit.
Marriott International bucked the trend of declining RevPAR in the second quarter— at least internationally. While global RevPAR at the world’ s largest lodging company by total rooms increased 1.5 % year-over-year in the second quarter, it jumped 5.3 % in international markets. The laggard was a combined U. S. and Canada with a 0.1 % decrease in actual dollars. Marriott now expects flat to 1 % RevPAR growth in the third quarter and 1.5 % to 2.5 % for the full year, with growth still expected to be meaningfully stronger internationally than in the U. S. and Canada.
Tony Capuano, president and CEO of Marriott International, referred to operating in a period of“ notable macroeconomic uncertainty” on an earnings call with analysts. RevPAR growth was strongest at the high end, with luxury RevPAR up 4 %. It weakened moving down the chain scales— below Marriott’ s prior expectations— with Q2 RevPAR in U. S. and Canada selectservice and extended-stay properties declining around 1.5 % YOY, primarily due to a decline in government demand, said Capuano. Around 66 % of Marriott’ s government revenue comes from the selectservice segment.
RevPAR declines contrasted with a
70 hotelsmag. com Sept / Oct 2025