2025 State of Independent Lodging Report

The year of optimizing performance

In the wake of the pandemic, hotels saw surging demand and soaring costs. By 2024, growth began to level off, but costs remained high. In 2025, these conditions are expected to persist, compounded by increasing price sensitivity among travelers and an ongoing labor crisis – putting even greater pressure on profitability.

Meanwhile, branded hotels continue to expand their market share. Today, they represent 72% of hotels in the U.S., 59% in Asia Pacific, and 38% in Central and South America, with even higher proportions in the development pipeline. While this intensifies competition, it also creates opportunities for independent properties to stand out in brand-saturated markets.

For independent hotels, 2025 is the year of optimizing performance – striving for the best possible results across marketing, revenue management, operations, and the guest experience – in a market that demands agility.

Traveler booking behavior and insights

This year’s analysis expands to more than 20,000 independent properties across 150 countries, drawing insights from nearly 40 million bookings between 2022 and 2024. 

The report offers a snapshot of travel patterns independent lodging operators can expect in 2025, along with strategies to optimize performance in a challenging and unpredictable market.

Key insights: 2024 global data