2025: The year of performance optimization for independent hotels
Cloudbeds' annual Report highlights key trends, pricing pressures, OTA dominance, and the rise of AI in independent hospitality
Cloudbeds' 2025 State of Independent Lodging Report indicates that the coming year will be defined by "optimizing performance" for independent hotels. Facing ongoing labor shortages, increased traveler price sensitivity, and competition from branded hotels—which now constitute 72% of U.S. hotels—independent operators must strategically refine their approaches to stay competitive.
Key takeaways
Occupancy stabilizes: Demand patterns leveled off in 2024; independents must actively capture market share to maintain occupancy.
Pricing pressure: Global Average Daily Rate (ADR) dropped by 1% in 2024, signaling traveler price sensitivity and softer demand.
OTA dependency: Independent hotels rely heavily on Online Travel Agencies (OTAs), which accounted for 61% of their bookings in 2024—significantly higher than branded hotels.
Emerging trends for 2025:
- Value-driven travel becoming more prominent.
- Independent properties increasingly seeking alternative revenue sources.
- Rising operational costs.
- Persistent labor shortages and high employee turnover.
- Accelerating adoption of AI in hotel operations.
Get the full report at Cloudbeds