RECAP
Exploring Hospitality Trends with Jan Freitag
Jan Freitag CoStar Group
Kelleye Martin , Moderator ISPA Chair
ISPA ’ S FIRST TOWN HALL OF 2025 set the stage for an insightful discussion on the trends shaping the hospitality industry this year . Presented by Jan Freitag , national director of hospitality analytics for CoStar Group , the session shed light on economic projections , consumer behavior and challenges facing the industry . Here are Freitag ’ s key takeaways :
Hotel industry outlook for 2025 “ The 2025 hotel outlook looks very much like 2024 ,” said Freitag .“ The American economy has continued to expand GDP growth — that growth is around 2.5 percent , which is about what the percent was last year .”
While revenue per available room ( RevPAR ) is expected to hold steady at 1.8 percent , Freitag noted a concerning trend that the room rate is not growing as quickly as the rate of inflation . But he says the outlook is continued growth .
Freitag highlighted disparities across market segments : “ The upper end of the market is going to do better than the economy-type property . The economy RevPAR is going to drop 0.4 percent , but the luxury is going to go up two percent , and for upper upscale , it ’ s going to go up three percent .”
The rise of the $ 1,000 ADR hotel room “ In September of 2024 , there were 450 hotels that had a $ 1,000 ADR ,” said Freitag , referring to average daily rates . The question now is whether this trend can continue . For Freitag , the answer continues to be yes .
JAN FREITAG TO PRESENT AT ISPA CONFERENCE ATTENDEES OF THE 2025 ISPA CONFERENCE can hear more from Freitag during his Education Session , The Trajectory of Travel & Hospitality Trends , on March 12 at 8 a . m . “ We ’ re going to talk about the state of the U . S . hotel industry in the luxury segment , along with the $ 1,000 ADR ,” Freitag previewed . “ We ’ ll also dig a little bit into some spa data and have a Q & A .”
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