In recent years, the U.S. lodging industry has experienced a marked slowdown in growth. After enjoying a period of double-digit expansion following the COVID-19 pandemic in 2020, the annual growth rate of lodging demand has now tapered to an average of just 0.7% for 2023 and 2024. This deceleration highlights a significant shift from the initial recovery phase, where the industry experienced a robust rebound.
According to the May 2025 edition of Hotel Horizons® by CBRE, the forecast for future lodging demand growth has been adjusted downward. This revision reflects the current trends and challenges facing the industry, as it continues to grapple with the aftermath of the pandemic and evolving market dynamics. The previous expectations of sustained high growth have been tempered by this more modest outlook.
The slowdown in growth can be attributed to several factors, including changing consumer behaviors, economic uncertainties, and increased competition within the hospitality sector. As the industry adapts to these challenges, stakeholders are likely to focus on strategies that can stimulate demand, such as enhancing guest experiences, investing in technology, and exploring new market segments.
Overall, the U.S. lodging industrys recent performance underscores the complexity of its recovery journey. While the initial post-pandemic surge provided a boost, the current environment calls for a recalibrated approach to growth and sustainability. Moving forward, the industry will need to navigate these challenges carefully to maintain its momentum and capitalize on new opportunities.