ALIS 2025: A Market Finding Its Stride

2. A More Active Transaction Market—But Not a Frenzy

Compared to 2024, the deal-making environment in 2025 is looking more favorable, though it’s far from a record-breaking year. Transaction volume is picking up, with more assets changing hands. Investors are still being selective, but the market is undeniably healthier than it was a year ago. One factor influencing activity: brand requirements and property improvement plans (PIPs). Some sellers are feeling the pressure to move assets before major capital reinvestments are required.

3. The Industry is Ready to Move On From COVID-19

Everyone—hotel brands, financial institutions, and even guests—has run out of patience with using COVID-19 as a crutch. While its impact lingers in certain ways, the grace period for underperformance or operational inefficiencies is over. Lenders are expecting stabilized financials, guests expect fully operational services, and brands are enforcing consistency. The industry is signaling that it’s time to fully transition from pandemic-era recovery mode to a more forward-looking approach.

4. A Steady and More Normalized 2025

Industry data suggests that 2025 will be a year of stability, with key performance metrics reflecting a more predictable environment. According to CoStar, the average daily rate (ADR) is expected to grow modestly by 1.6%, signaling incremental improvement rather than volatility. While economic uncertainties remain, the overall outlook is for a more balanced operating environment compared to the turbulence of prior years.

5. Meetings & Events Are Scaling Back Up

One notable shift in 2025 is the return of larger-scale meetings and events. In 2024, many companies opted for smaller gatherings, but this year, medium- to large-sized conferences and
corporate events are making a comeback. This is a promising sign, as group business plays a critical role in filling midweek occupancy and driving incremental revenue beyond leisure demand.

6. Labor Market Pressures

The industry continues to grapple with a tight labor market, leading to increased labor costs. This trend is prompting operators to explore innovative solutions, such as enhanced employee benefits, investment in automation, and streamlined operational processes to attract and retain talent while managing expenses.

7. Anticipated Policy Shifts Under the New Administration

The recent change in the U.S. administration has introduced a sense of cautious optimism among industry stakeholders. Many anticipate a more business-friendly environment, with expectations of regulatory reforms and economic policies that could stimulate growth in the hospitality sector. However, the exact impact remains to be seen as policies are proposed and implemented.

8. The Theme of ALIS 2025: “More Clarity”

One of the most consistent messages at this year’s conference was that the industry is finally gaining more clarity. Whether it’s on financing conditions, transaction opportunities, or demand trends, there’s a stronger sense of direction than in recent years. While uncertainty still exists, stakeholders now have better insights to guide decision-making—making 2025 a year of strategic moves rather than speculative bets.

The industry is entering a phase of steady improvement, though it won’t be an overnight transformation. As patience wears thin and capital waits for the right moment, 2025 will be a year of selective but meaningful progress. ALIS 2025 reinforced that while the market isn’t booming, it is undoubtedly moving forward.