WASHINGTON – Lodge properties struggled beneath rising prices that outpaced income development in 2024, difficult financial development and job creation. Regardless of these points, potential lies forward, pushed by key tendencies in visitor spending, shifting traveler behaviors, and upcoming main sports activities and leisure occasions, in line with the American Lodge & Lodging Affiliation’s (AHLA) 2025 State of the Industry report produced in collaboration with AHLA Silver Associate Accenture.

The report discovered that property-level prices total rose quicker than income and that particular bills related to operations and upkeep, gross sales and advertising, and IT every rose practically 5% in 2024, additional intensifying a difficult lodge operations setting.

America’s small enterprise lodge house owners have been struggling as rising prices, compounded by excessive inflation and rates of interest, make it tough to remain open and serve friends, mentioned AHLA President & CEO Rosanna Maietta. That’s why we can be targeted on selling insurance policies that assist our members overcome these challenges to allow them to concentrate on what they do greatest – creating pathways for his or her staff to seek out lasting careers and creating unforgettable experiences for his or her friends.

Hoteliers will welcome the chance to faucet into customers’ rising demand for journey and evolving alternatives to harness stay sports activities and leisure as a further income generator. There’s a steadiness to strike in delivering on buyer expectations, and conserving a cautious watch on the underside line. Leveraging knowledge and embedding applied sciences resembling synthetic intelligence can enhance personalization of experiences throughout rising new buyer segments, together with agility and cost-effectiveness. Finished properly, this could result in elevated loyalty, strengthened relationships and new development alternatives, mentioned Liselotte De Maar, managing director, international technique lead for journey at Accenture.

Different high findings from the 2025 State of the Trade report embody:

• Inns supporting staff: Inns are projected to pay staff a file of $128.47 billion in wages, salaries, and different compensation in 2025, up from $125.79 billion in 2024.
  • Inns are projected so as to add one other 14,000 staff in 2025 and make use of greater than 2.17 million folks. Nevertheless, that is nonetheless about 200,000 wanting the two.37 million folks employed in 2019, earlier than the pandemic.
• Inns help communities: Inns are projected to generate a file of $55.46 billion in state and native tax income in 2025, up from $53.97 billion in 2024.
  • The 2025 projection consists of $26.82 billion in lodging-specific taxes.
  • Inns are additionally anticipated to generate a file of $30.14 billion in federal tax income in 2025, up from $29.55 billion in 2024.
  • Nominal lodge visitor spending on lodging, transportation, meals and beverage, retail, and different bills is anticipated to succeed in $777.25 billion in 2025, a 4% enhance from the file excessive $747.17 billion spent in 2024.

The report defined intimately how inns can make the most of a number of alternatives to maximise income, together with main sports activities and leisure occasions such because the 2026 World Cup, which can be hosted by a number of U.S. cities. It additionally highlighted different rising journey tendencies that would present alternatives to drive income and development, together with:

• Shifting demographics provide an opportunity to create worth throughout generations, in addition to increasing particular choices to rising segments like getting older and solo vacationers
• Profitable methods by hoteliers to create new sources of income, resembling tenting lodging, stays which might be targeted on leisure or new partnerships by way of loyalty applications
• Assembly the journey and lodging necessities to help the rising variety of occasions and experiences for attendees in addition to workers, as cities throughout the U.S. are evolving into vibrant hubs of sports activities and leisure tourism
• Utilizing expertise and AI to create a extra private journey expertise as folks e book journeys and plan itineraries

Obtain the 2025 State of the Trade report here. To schedule an interview with both AHLA Senior Vice President of Federal Affairs, Coverage & Analysis or managing director, international technique lead for journey at Accenture, Liselotte De Maar, to debate the report, e-mail [email protected].