US hotel investors are increasingly positive about the direction of the market, with 94% saying they expect to maintain or increase their hotel investments this year, driven by a more optimistic outlook for total returns and distressed investment opportunities. This is up from 85% of investors who had the same plans last year, according to a hotel investor intentions survey conducted by CBRE.

Only 6% of respondents said they expect to decrease their hotel investments this year, down from 16% in 2024. Decelerating revenue per available room (RevPAR) growth was the primary factor along with continued concerns around labor, insurance and capital costs.

The report forecasts RevPAR will grow 2.2% for urban locations during the coming year, driven by increased group, business transient and international travel. Meanwhile, leisure demand will likely continue to normalize with modest average daily rate gains leading to 1.5% RevPAR growth for resort locations.

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