Business travel demand in 2025 at U.S. hotels should rise year over year but overall demand growth will be “muted” thanks to softening leisure travel, according to a PwC forecast released Thursday.
PwC in its November 2024 US Hospitality Directions report projected 2025 U.S. hotel occupancy to hold steady year over year at 62.9 percent and average daily rate to increase 1.3 percent to $160.49. The consulting giant forecast U.S. revenue per available room in 2025 to increase 1.5 percent to $100.98.
“Despite the continuing growth in business travel, particularly meetings and group business, and the potential resurgence of inbound international travelers to pre-Covid levels, economic challenges are expected to continue to impact leisure travel,” according to PwC.
STR and CBRE Hotels Research also recently projected similar growth in 2025.
