CoStar Group which tracks 85,000 hotels in the United States has downgraded growth projections of 2025 for this industry. The reason given was first-quarter performance and economic uncertainty.
This new forecast is despite recent signs of stabilization after the weakness seen in March and April.
Amanda Hite is the president of STR (CoStar’s hospitality data division) and she said that top-line performance was still increasing in spite of the current economic climate. Demand is expected to remain weak until consumer confidence increases, particularly in the mid- and low-priced tiers.
CoStar, who announced the projections at the NYU International Hospitality Investment Conference on Monday, has cut its forecast for 2025 revenue per available room growth (RevPAR), by 0.8 percentage point and f
