US construction lowest in 40 quarters
US construction lowest in 40 quarters
NATIONAL REPORT – The volume of U.S. hotel rooms under construction decreased year over year for a ninth consecutive month, according to September data from CoStar.
Hotels in construction stood at 137,956 rooms (-12.3% YOY); in final planning was 258,836 rooms (-3.5% YOY); and in planning stage at the end of September was 327,304 rooms (-2.6% YOY).
“More than 80,000 rooms below the peak from Q3 2020, construction fell to the lowest point of the past 40 quarters,” said Isaac Collazo, STR’s senior director of analytics. “Uncertainty often leads to inaction, and developers and financial institutions are still waiting for a more favorable environment. Higher building and material costs are also hampering groundbreakings, and we don’t foresee the cycle turning for some time. However, more rooms are under construction now than after the Great Recession—development is down but still happening.”
Wyndham misses with bigger RevPAR drop
PARSIPPANY, New Jersey – Reflecting ongoing bifurcation in the hotel business, economy and select brand giant Wyndham Hotels & Resorts struggled in the third quarter, reporting earnings that included a 5% dip in U.S. RevPAR and 2% internationally. Royalties and franchise fees were more than $12 million below Street consensus.
In the U.S., RevPAR performance reflected a 300 basis-point reduction in occupancy and a 200 basis-point decline in ADR. Softer results in Texas, Florida and California were partially offset by continued strength across the Midwest.
Internationally, the decrease was primarily driven by Asia Pacific, including China where RevPAR declined 10%, and Latin America, where RevPAR declined 5%. This was partially offset by 4% growth in the EMEA region and 8% growth in Canada, both primarily reflecting pricing power.
Wyndham also lowered full-year guidance, cutting its RevPAR outlook by 200-400 bps in the U.S., inclusive of an incremental 100 bps FX headwind, and international RevPAR guidance dropped 200-300 bps. Adjusted EBITDA was update to $725 million from $745 million; fee-related and other revenues was adjusted to $1.43-$1.45 from $1.45-$1.49; and adjusted net income was cut to $347-$358 million from $358-$372 million.
At the same time, Wyndham also reported delivering record year-to-date organic room openings, grew global pipeline to another all-time high, and achieved double-digit growth in ancillary revenues.
"Our third quarter results once again demonstrate the resilience of our business model and the consistent execution of our teams around the world," Wyndham President and CEO Geoff Ballotti said in the earnings release. “As we continue to focus development on our strongest brands and markets, advance the industry's leading technology and loyalty platforms and drive meaningful returns to shareholders, we’re positioning Wyndham for sustained growth and value creation well into 2026 and beyond."
Other highlights included:
- System-wide rooms grew 4% year-over-year.
- Awarded 204 development contracts globally, an increase of 24% year-over-year.
- Development pipeline grew 4% year-over-year and 1% sequentially to a record 257,000 rooms.
- Ancillary revenues increased 18% compared to third quarter 2024 and 14% on a year-to-date basis.
- Diluted earnings per share increased 5% year-over-year to $1.36; adjusted diluted EPS grew 5% to $1.46, or increased 1% on a comparable basis.
- Net income increased 3% year-over-year to $105 million; adjusted net income increased 2% to $112 million, or decreased 2% on a comparable basis.
- Adjusted EBITDA increased 2% year-over-year to $213 million, or remained flat on a comparable basis.
- Returned $101 million to shareholders through $70 million of share repurchases and quarterly cash dividends of $0.41 per share.
Wyndham’s global system grew 4% including 2% growth in the higher RevPAR midscale and above segments in the U.S. and 7% growth in the higher RevPAR EMEA and Latin America regions.
On September 30, 2025, the company’s pipeline consisted of approximately 2,180 hotels and 257,000 rooms, representing another record-high level and a 4% year-over-year increase.
Approximately 70% of the pipeline is in the midscale and above segments, which grew 4% year-over-year; approximately 17% of the pipeline is in the extended-stay segment; approximately 58% of the pipeline is international; approximately 75% of the pipeline is new construction and approximately 36% of these projects have broken ground; rooms under construction grew 3% year-over-year.
Fee-related and other revenues were $382 million compared to $394 million in third quarter 2024, reflecting a 5% decline in RevPAR and lower other franchise fees, partially offset by an 18% increase in ancillary revenue, royalty rate expansion both domestically and internationally and global net room growth of 4%.
The company generated net income of $105 million compared to $102 million in third quarter 2024, primarily due to higher adjusted EBITDA, partially offset by higher interest expense. Adjusted net income was $112 million compared to $110 million in third quarter 2024.
Adjusted EBITDA grew 2% to $213 million compared to $208 million in third quarter 2024. This increase included a $6 million favorable impact from marketing fund variability, excluding which adjusted EBITDA remained flat on a comparable basis as lower royalties and franchise fees, along with elevated costs associated with insurance, litigation defense and employee benefits – all of which are reflective of the broader operating environment – were more than offset by cost containment measures, including both operational efficiencies and one-time variable reductions.
Diluted earnings per share increased 5% to $1.36 compared to $1.29 in third quarter 2024. This increase primarily reflects the benefit of a lower share count due to share repurchase activity.
Accor upgrades EBITDA guidance, confirms outlook
PARIS – Accor followed the pack with third quarter revenues showing softness in its Premium, Midscale and Economy (PM&E) division post a ing1.1% decrease in RevPAR compared with the third quarter of 2024, while its Luxury & Lifestyle group grew RevPAR a 5.0% with two-thirds of the growth driven by prices and one-third by occupancy and rates.
Accor confirming its full-year guidance with RevPAR growth between 3% and 4% and net unit growth of around 3.5%.
Furthermore, following the implementation of additional cost-saving measures amounting to more than €20 million aimed at partially offsetting the negative impact of exchange rate variations, Accor is revising upward its recurring EBITDA growth guidance for fiscal year 2025 to between 11% and 12% (between 9% and 10% initially) at constant exchange rates.
The group's confidence in its ability to deliver on its growth outlook has also led it to launch a new tranche of share buyback for an amount of €100 million in Q4 2025.
The other big news coming out of Paris is Accor’s Board of Directors unanimously approving the start of preparatory work to evaluate a possible stock market listing for Ennismore, the lifestyle hotel and restaurant brands entity with 192 hotels and 500-plus restaurants and bars, in accordance with the agreement between Accor and the other Ennismore shareholders.
In 2024, Ennismore grew net units by 17.6% and created EBITDA of €170 million as a contribution to Accor's financial statements.
While Accor said there is no certainty that this transaction will be completed, it would enhance liquidity and flexibility to support Ennismore’s growth platform. Should it be completed, Accor would remain the controlling shareholder of Ennismore.
During the third quarter, Accor opened 77 hotels, representing 11,200 rooms, resulting in net growth of 2.5% in the network over the last 12 months. At the end of September, the group had 859,830 rooms (5,760 hotels) and a pipeline of more than 250,000 rooms (1,453 hotels).
Division performance
In the PM&E division, the Europe North Africa region posted a 4.6% decline in RevPAR compared with the third quarter of 2024. Accor said demand remained strong, with a slight increase in occupancy rates compared to last year. However, the decrease in the number of constrained days compared to the Olympic and Paralympic Games period led to a decline in average prices. RevPAR growth in September returned to positive.
The Middle East, Africa and Asia Pacific region posted a 2.7% increase in RevPAR compared with the third quarter of 2024. China's negative RevPAR continue to weigh on the region although Accor said it improved sequentially during the quarter. Excluding China, the region's RevPAR is up 5.3%, driven by prices.
The Americas region, which mainly reflects the performance of Brazil (63% of the region's room revenue), delivered a 7.1% increase in RevPAR compared with the third quarter of 2024. Brazil continued to record strong price increases driven by sustained demand from corporate guests.
Luxury, which accounts for 72% of the Luxury & Lifestyle division’s room revenue, posted a 4.3% increase in RevPAR compared with the third quarter of 2024. RevPAR growth in the segment was strong across all brands and regions, outperforming the PM&E segment in comparable areas.
Lifestyle showed a 6.9% increase in RevPAR compared with the third quarter of 2024. Despite geopolitical tensions, resort hotels continued to perform well during the quarter, particularly in Turkey, Egypt, and the United Arab Emirates.
Revenue breakdown
For the third quarter of 2025, the group recorded revenue of €1,369 million, up 0.1% at constant currency compared with the third quarter of 2024. This increase breaks down into a 1.1% decrease at constant currency for the Premium, Midscale and Economy division and a 0.2% increase at constant currency for the Luxury & Lifestyle division.
Currency effects had a negative impact of €68 million, mainly related to the Australian dollar ((8)%), the U.S. dollar ((6)%), and the Canadian dollar ((7)%).
Revenue from Reimbursed Costs (which consist of the re-invoicing of costs incurred on behalf of hotel owners) amounted to €297 million, up 2.3% at constant currency compared with the third quarter of 2024.
Management and franchise revenue came to €354 million, up 3.1% at constant currency compared with the third quarter of 2024. This variation reflects RevPAR growth in the group's various geographic areas and segments (+0.8% compared with the third quarter of 2024) and net unit growth (+2.5%).
New hotel brands emerge fast and furious. There’s a reason for that.
The debate over whether there are too many hotel brands is enduring, but no matter one’s opinion, new brands keep popping up with no letup in sight.
Hospitality authorities point to myriad reasons, including changing market demographics, shifting appeals to owners and macroeconomic fluctuations. The hotel industry is unique, noted Chekitan Dev, distinguished professor of hospitality business at Cornell University, in the sense that brands are constantly birthed but not many die. As a result, he said, “I like to say that hotel brands are not over-created but under-destroyed.”
One reason, said Dev, is that unlike goods—brands that can be phased out much easier—hotel brands are invested in by owners, who help to launch, grow and sustain them, given the multi-year duration of a typical franchise agreement, and not easy to phase out.
Brands are created for either demand-side or supply-side reasons, said Dev. Demand side reasons include: filling market gaps (an example is Hilton’s Graduate Hotels, developed specifically for university markets); changing demographics (like Marriott International’s citizenM for the urban, tech-forward, budget-conscious younger traveler); evolving market forces favoring more eco-friendly brands (think Starwood Hotels’ 1 Hotels) or the coming-of-age of tech-savvy traveler (newly represented by the AI-driven FlyZoo brand developed by Alibaba).
Supply-side reasons include existing brands that have oversaturated a particular market, especially where areas of protection exist, and a new brand or brand extension is needed to fill in a growing market—think IHG Hotels & Resorts’ Holiday Inn Express brand extension to complement Holiday Inn or Tru by Hilton, which was developed as an alternative to Hampton by Hilton. Other new brands are disruptors of existing brands, such as a big-box brand like Signia by Hilton that seeks to disrupt a legacy brand like Sheraton Hotels. A third segment are conversion brands that offer owners the ability to flex to a new flag from either another brand or an independent— Spark by Hilton, as an example.
The market has changed, said Neil Jacobs, the former CEO of Six Senses and now a senior strategic advisor at Capella Hotel Group, particularly at the luxury end. Smaller, more personality driven entries, like Capella’s sister brand, Patina, are chipping away at market share as customer preferences evolve. Consumers, said Jacobs, are more focused on wellness and not every brand is able to appeal to that need. Also, brands that can demonstrate that they care about the environment are taking market share.
In addition, Jacobs noted that brands need a narrative.” With smaller brands, “It’s not just about great service food and service, but there’s a story behind them,” he said.
Gilles Cretallaz, COO of Dusit International, which recently introduced Dusit Hotels, said a number of trends, including Gen-Z travel and multi-generational trips, are driving new brands, especially flexible, conversion-friendly versions.
Aman Group, whose eponymous Aman Resorts is widely considered the pinnacle of luxury by a loyal following called Amanjunkies, launched a sister brand in 2020 called Janu, which is equally luxurious (and expensive), but where Aman is known for its tranquility and respite, Janu offers a more dynamic, social stage. “It is a brand designed to feel more open and dynamic, inviting guests not just to retreat, but to engage, share and discover,” a representative from Janu said. Janu Tokyo opened in March 2024 and there is a global pipeline of 12 destinations for the brand including the forthcoming Janu Turks & Caicos, Janu Dubai, Janu Diriyah and Janu AlUla.
There’s room for more brands, said Jamie Bruce, president of Teneo Hospitality Group, a representation and marketing firm, because traveler expectations and owner needs evolve faster than legacy flag architectures. “New brands crystallize a clear point of view—purpose, price-to-value, guest experience and vibe—and give owners conversion-friendly playbooks instead of one-size-fits-all standards,” he said.
Filling Gaps
Lodging companies maintain that their brand additions fill gaps; otherwise, there is no rationale for doing them. Patina, said Jacobs, fills a space between luxury and lifestyle hotels. “Why can’t you have a luxury lifestyle hotel with more vibe, with a focus on music and wellbeing and no white tablecloths? We call it transformative luxury.”
Cretallaz cited two clear holes that called for the creation of Dusit Hotels. First, there was a need for a brand in the upper-upscale space that balances consistency with genuine localization. Second, guests increasingly want a sense of purpose built into their stay, whether that’s wellness, cultural connection or community impact.
Janu, according to Aman, “bridges the gap between solitude and sociability, offering guests the freedom to choose how they want to engage: whether through restorative wellness, culturally immersive experiences or communal dining that sparks authentic interaction.”
“The white space right now is experience-forward, wellness-literate and biophilic design at a sensible price point,” said Bruce. “Brands that blend lifestyle personality with serious meeting bones—great natural lighting, indoor/outdoor flow, frictionless tech—are filling that gap.”
Soft brands and collection plays are also surging, said Bruce, “because they keep a hotel’s independent character while plugging into distribution and loyalty ecosystems owners need.”
LivSmart Studios by Hilton, which launched in 2023, is Hilton’s answer for the midscale extended-stay space and currently has two hotels open in Tennessee and Indiana and a pipeline of more than 350 active deals. Isaac Lake, brand leader of LivSmart, said the brand addresses the $300-billion workforce travel market that has continued to expand, especially with the rise in demand for more flexible and affordable long-stay accommodations. The hotels, he said, cater to those with relocation needs and traveling professionals like nurses, families or remote workers with average stays of 10 nights or longer.
Fitting In
Brand portfolios expand vertically and horizontally, said Dev. Vertically, portfolios add brands at new price points to tap into unserved or underserved markets (think Marriott adding Bulgari to serve the uber-luxury market). Horizontally, portfolios add brands (e.g., Element created to be an eco-friendly Westin at a similar price point) or brand extensions, such as legacy brands adding all-suites or extended-stay versions.
Minor Hotels jumped into the brand proliferation game with gusto in July, unveiling four new brands: The Wolseley Hotels (luxury with British flair), Minor Reserve Collection (luxury soft brand), Colbert Collection (premium soft brand) and the select-service iStay Hotels. “We identified whitespace in the luxury lifestyle and conversion segments,” said Ian Di Tullio, chief commercial officer of Minor Hotels. Soft brands, once considered optional, are now essential, Di Tullio added, allowing independent hotels to keep their identity while getting the marketing and distribution support of a larger lodging company.
In some cases, adding brands helps avoid “brand stretch,” said Bruce. “With too few brands in a portfolio, there is risk of diluting the unique value of each brand,” he said. “A well-balanced portfolio provides the flexibility to grow while protecting brand integrity.
Dusit Hotels, said Cretallaz, anchors the upper-upscale tier, sitting above dusitD2 in lifestyle upscale, Dusit Princess in upper midscale and ASAI Hotels in lifestyle midscale. It also sits alongside the soft brand Dusit Collection and Dusit Suites, which caters to the long-stay upscale segment.
Hilton has always been laser focused on drawing distinctions, often referred to as swim lanes, between its brands, said Lake. Each Hilton brand, he said, offers a unique proposition to provide more options to owners for development and for guests “to dream and stay at amazing hotels for various occasions and needs.”
Rather than competing with the likes of Homewood Suites and Home2 Suites, LivSmart Studios extends the portfolio’s reach by attracting new guests who may not have stayed with Hilton before, while also giving existing customers another option for different types of trips.
Owner Aimed
Brand success and growth hinge on their appeal to existing owners of other brands and new hotel owners searching for a brand. Adding brands, Dev said, provides multiple benefits for owners, including pricing power by controlling a larger inventory all served by the same channel, economies of scale by spreading their cost, infrastructure and management over multiple hotels serving different sub-markets and limiting cannibalization.
“The new brands absolutely present more options for investors,” said Jacobs, adding that he expects there will ultimately be more Patinas than Capellas.
Many owners operate multi-brand portfolios, said Cretallaz, so they want distinct propositions that won’t eat up each other. At the same time, they want conversion-friendly flags that can adapt to existing assets and reduce capital outlay.
Future of Flags
Brands will keep coming, said Jacobs, but they will have to be narrative driven. “They will have to have a point of view and stick to it. You can’t be another lovely, plain vanilla brand because that space is too crowded.”
In the next phase of brand portfolios, said Dev, there will be some streamlining. For example, Accor spun off Ennismore, which shrank its portfolio from about 55 brands to about 43.
Sometimes, Dev noted, brands do die. Holiday Inn Select was phased out, Stouffer Hotels was eliminated when they were converted to Renaissance and Formule 1 and Etap hotels in Europe were folded into Ibis by Accor. An occasional brand may disappear, but another steps in to fill its place.
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