📝CRE360 Take:
CBRE reports a 1.4% drop in occupancy in Q2 2025, with room supply growing faster than demand. Leisure travel cooled, and group/business travel still hasn’t fully filled the gap. New hotel openings squeezed occupancy further, moderating revenues.
CRE360 notes CBRE underplays shifting traveler patterns. Remote work and “bleisure” are reshaping demand curves. Strength in Sun Belt and resort markets contrasts with urban weakness, but the report glosses over these divergences.
Signal: hold and watch. Urban corporate hotels remain risky until business travel revives. Upscale leisure and select-service hotels in strong markets are worth monitoring. Investors should be ready for selective acquisitions where sentiment discounts fundamentally resilient assets.
Publisher Credit:
Full report: CBRE — Q2 2025 U.S. Hotels Figures
Never miss a Signal
Get the daily brief that busy CRE professionals rely on.