The Details of the Very ‘Idiotic’ Public Spat Between Elon Musk and Ryanair Boss
LOS ANGELES — The bad news first. U.S. revenue per available room contracted in 2025, decreasing 0.3% year-over year, according to data released by CoStar. The good news: This year should see an increase—albeit minimal—but like any forecast, subject to change.
So moves the hotel industry—like a Pong ball at the whims of an economy and political climate it can’t control.
The indeterminate swings are a nuisance for hoteliers that thrive on certainty, but lodging company CEOs, speaking at the Americas Lodging Investment Summit, here at the JW Marriott Los Angeles L.A. LIVE, offered optimism regardless of the environment.
“There’s been a disaggregation between the growth of travel and the growth of economies,” Elie Maalouf, CEO of IHG Hotels & Resorts, said of the last few years. He pointed to the record amount of inbound travel to Europe from the U.S. as example.
Inbound travel to the U.S. is another story. In October, U.S. Travel projected a 6.3% decline in inbound visits, and preliminary data through year-end largely confirms that outlook. Total international arrivals are estimated to have fallen from 72.4 million in 2024 to 68.5 million in 2025—a decline of 5.4%. December followed the pattern seen throughout the second half of the year. Visits from Canada were down 25.1% year-over-year, while travel from Mexico increased 4.8% and overseas visitation declined 1.3%. Though Canada still led all countries in U.S. travel spending at nearly $16 billion, the early and sustained decline in visitation reflects deeper challenges that won’t be fully captured by near-term year-over-year comparisons.
Travel to the U.S. is projected to fall to just 85% of 2019 levels in 2025.
“The U.S. is slower,” Maalouf said, citing tariff turmoil, government cutbacks and the government shutdown as three culprits leading to enervated growth rates. He’s more sanguine on 2026, especially since comps will be demonstrably easier and huge demand generators, highlighted by America250 and FIFA World Cup, will have a propitious impact.
Mit Shah, CEO of Noble Investment Group, which invests in and owns hotels, parroted Maalouf, vexed by wigwag performance from late 2024 into 2025. Noble’s Q4, he said, was up 7%, which carried over into January 2025, when they were up 8%. “I was wildly optimistic,” he said. Then came DOGE, the Department of Government Efficiency, an initiative by the second Trump administration to modernize information technology, maximize productivity and cut excess regulations and spending within the federal government. “It took a significant amount of government travel out of the system almost immediately,” he said. “Then the Canadians started disliking us and then there was Liberation Day and a record government shutdown.”
Even against forces outside his control, Shah remains bullish on the prospects of travel. “I continue to believe that the secular trends out there bode well for travel in general and for global and domestic business.”
Beyond U.S. borders, CEOs cheered the apparent, though still tepid, China comeback, both on the travel and development sides of the ledger, with Tony Capuano, president & CEO of Marriott International, pointing to optimism about growth moving forward. “Even in an environment like that, we signed more deals in China [in 2025] than we have in any year in history, even against the backdrop of weak performance,” he said.
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A thaw in deal activity and growth in new development is not a panacea for other ills faced by the industry; namely, expenses up and down the P&L that threaten margins and operating income. “Most expense items continue to grow at pace at or ahead of the historical base and it has put extraordinary stress on the return proposition of the investment,” Capuano said, adding that investors are using it as impetus to explore investments outside traditional hospitality, such as in the alternative-accommodations landscape. “There is a fundamental dilution on the return model for investing in hotels,” Capuano said. Brand companies have aimed to ease the cost burden by examining affiliation costs, ramp-up standards and leveraging scale to save more in procurement. “There is urgency around making these investments as compelling to our partners as they once were, because that’s not where they are,” he said.
Noble’s Shah tracks it closely and gives credit to the brands for trying to find solutions for owners that make hospitality investment more attractive. “There is real dialogue and strong efforts by brands at looking at this operating model,” he said, beyond reliance on the delta between RevPAR and total expense growth. He called profitability a team effort built on partnership. “I’m actually more confident and optimistic than I ever have been that we are down that path,” Shah said.
IHG’s Maalouf tapped into owner frustration by offering both empathy and solutions. “There’s no question that the last five years have been kinder to brand companies than to ownership companies—the share prices tell the story,” he said. “We can’t be successful without hotel investors. If somebody isn’t willing to be asset heavy, then the asset-light game stops.”
As succor, he ticked off various ways through scale and technology to assist owners in revenue management, marketing, on-prem support and more. “AI allows us to keep that quality of service high, but lower the unit cost,” he said. In May 2024, for instance, IHG lowered its standard loyalty assessment fee that owners pay into the fund.
Global brand companies, he said, are adopting technology to help cover escalating costs. “That’s what great businesses do. They don’t adopt technology just to produce more things, but to lower costs,” Maalouf said.
F&B programming and how to use space efficiently has long been a thorn in the hospitality industry’s side—more so now as traveler expectations and experiences have immutably changed. For instance, there are a multitude of hotels, as Capuano said, that are now obsolete, anachronistic product. The white elephants of the hotel industry, if you will. “We built these amazingly efficient boxes in the midscale and select-service tier, but at that upscale and upper-upscale tier, that’s the riddle,” said Capuano. “You’ve got thousands of hotels that were designed for a different era.” He added that traditional roles, from bellman to doorman, are likely due for a reset.
If hotels need a rethink, don’t expect room sizes to get bigger. Marriott and IHG each made big acquisitions in 2025; the former of citizenM and IHG with Ruby Hotels, both European-born brands. CitizenM is known as a tech-forward brand that cracked the code on self-check in, while Ruby Hotels has been described as “lean luxury.” Both favor activated public spaces and smaller room footprints. “We call it urban micro,” said Maalouf. “Where you can shrink the room size, but with artful design, people feel really good about that room.”
In economic terms, smaller rooms gives developers the ability to add more room density, which increases ROI and, as Maalouf pointed out, “your square foot return is much better.”
According to Maalouf, all you need is 140-square foot-rooms and a buzzy public space. “That actually makes money,” he said.
Amsterdam’s city government has sought an alternative to docking large cruise ships right in the city center, and now the leading option on the table is a simple one: a complete ban on large cruise ships by 2035.
The city, which welcomes 20 million visitors per year—far greater than its own population of just under one million—has long sought ways to curb growing tourist numbers; it was even named to the Fodor’s No List in 2023. The city has already put limits on new hotel construction and has ended efforts promoting tourism. Of particular concern are so-called “stag” tourists, who come to the city’s red-light district from Britain and the Dutch communities surrounding Amsterdam, drinking and creating a general nuisance.
For large cruise ships, the nuisance is a different one: pollution. The city had sought to move large cruise ships out of the city center on pollution concerns, and because the terminal’s current location would prevent the construction of a planned bridge across the IJ river.
In July, activists belonging to the environmental group Extinction Rebellion blocked the arrival of 2,850-passenger Celebrity Eclipse using inflatable canoes. The activists said they chose that ship because of its performance on international environmental assessments. After a two-hour delay and intervention by port officials, the ship docked, and five activists were arrested by police.
The city estimates that the loss of large cruise ships would cost €46 million over the next three decades, the cost of an alternative cruise terminal further outside the city center would exceed €85 million, and there would be no guarantee that revenues would ultimately justify its construction.
The current city administration said it would not vote on whether to ban large cruise ships or move the cruise terminal until after local elections are held on March 18, leaving the final decision to the next city administration to issue a final decision, effectively putting the fate of large cruise ships to the city’s voters. The city council decided in 2024 to limit arrivals of large cruise ships to under 100 per year by this year.
A proposed ban would not affect river cruises, which account for significant traffic. Amsterdam has long been a popular turnaround port for European river cruises.
Local party leader Rob Hofland told NL Times that the proposal to ban large cruise ships would benefit the city, “Years after our proposal, we are finally going to free Amsterdam from these floating apartment blocks. They pollute our air, are bad for the climate, bring hordes of tourists into our city, and block a bridge over the IJ. The alderman has shown that relocating the cruise ship terminal within Amsterdam is not possible. That leaves only one option: out of the city. In our view, the right choice.”
A ban on large cruise ships in Amsterdam would not entirely ban cruise tourists from the Netherlands. Large ocean cruise ships also call at Rotterdam—the largest seaport in Europe—roughly an hour away from Amsterdam by rail. Smaller ocean ships also occasionally dock at The Hague.
Governments around Europe are grappling with how to stem the tide of cruise passengers. Greece considered a cruise passenger tax, while Barcelona—Europe’s busiest cruise port—has been shutting down terminals in a bid to reduce daily cruise passenger arrivals by the end of the decade.
The Netherlands is a top tourism destination in Europe, driven largely by interest in Amsterdam, which ranked as the 7th most popular tourism destination in the world in 2025. Inbound visitor arrivals surpassed 2019 levels in 2023 and grew again in 2024. Full year tourism statistics for 2025 are not yet available, but projections indicate another year of growth.
In Summer 2026 several cruise lines, including Celebrity, Carnival, Seabourn, Viking, Oceania, Virgin Voyages, and Ponant are scheduled to dock at the city’s cruise terminal.
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