HOSPITALITY MARKET UPDATES | CRE TRENDS & INSIGHTS
HOTEL PERFORMANCE • REVPAR & ADR • CAPITAL MARKETS • FINANCING STRATEGIES
Cornovus Capital’s Hospitality Market Updates provide Q1 2025 insights for hotel owners, investors, and lenders evaluating RevPAR, ADR, occupancy trends, and capital markets conditions across the Southwest, West Coast, Midwest, Southeast, and Northeast U.S. hotel sectors.
Each regional report integrates operating performance, demand drivers, development pipelines, and financing activity to help sponsors understand how lenders are sizing hotel loans, where capital remains available, and which business plans are most financeable in today’s market. The focus is on actionable insight—how current fundamentals translate into acquisition, refinance, recapitalization, and renovation strategies.
Use these updates as a reference point when benchmarking existing assets, pursuing new investments, or preparing a hospitality financing request.
Q1 2025 U.S. HOSPITALITY MARKET REPORTS
Select a region below to review detailed Q1 2025 hospitality performance, demand drivers, and capital markets commentary. Each report provides sponsor-ready narrative analysis for underwriting, lender conversations, and capital planning.
Southwest U.S. Hospitality Market Report – Q1 2025
The Southwest hospitality sector entered 2025 with strong fundamentals supported by population growth, corporate migration, energy-sector expansion, and steady tourism demand. Texas anchors the region, with Dallas–Fort Worth, Austin, Houston, and San Antonio driving much of the RevPAR and ADR outperformance, while Phoenix, Tucson, Albuquerque, and Santa Fe provide diversified resort, medical, government, and arts-driven demand.
Lenders remain active across SBA 7(a), SBA 504, bridge, and conventional executions for well-located select-service, extended-stay, and upper-midscale hotels with credible renovation and capital plans.
West Coast U.S. Hospitality Market Report – Q1 2025
The West Coast hospitality sector reflects a mix of international visitation, coastal leisure demand, entertainment and media activity, and resilient urban business travel. Gateway metros such as Los Angeles, San Diego, San Francisco, and Seattle benefit from global tourism, events, and convention calendars, while secondary markets in California, Oregon, and Washington capture logistics, manufacturing, and regional corporate demand.
Capital markets remain selective but functional, with sponsors leveraging SBA, bridge, and conventional structures to finance PIPs, conversions, and recapitalizations on well-positioned hotels.
Midwest U.S. Hospitality Market Report – Q1 2025
The Midwest hospitality sector continues to demonstrate stable performance supported by corporate, healthcare, education, logistics, and government demand. Major metros such as Chicago, Minneapolis, and St. Louis lead regional RevPAR growth, while secondary markets including Columbus, Cincinnati, Louisville, and Des Moines benefit from event, institutional, and manufacturing-related travel.
Lenders remain constructive on experienced sponsors, in-place cash flow, and disciplined capital expenditure plans, with attractive structures available for both stabilized and value-add hotel business plans.
Southeast U.S. Hospitality Market Report – Q1 2025
The Southeast remains one of the most active hospitality regions in the U.S., driven by population in-migration, diversified employment bases, logistics and industrial expansion, and its role as a national tourism and events hub. Florida markets, coastal Carolinas, Georgia, and Tennessee balance leisure-driven ADR strength with normalized post-COVID occupancy patterns and more selective development pipelines.
Financing activity is focused on well-located select-service and extended-stay hotels with diversified demand and credible sponsor business plans, with lenders structuring SBA, CMBS-like, LifeCo, and bridge executions to align with hold strategy and renovation timelines.
Northeast U.S. Hospitality Market Report – Q1 2025
The Northeast hospitality sector operates in a high-barrier, institutionally focused environment with tight zoning, entitlement complexity, and elevated operating costs. Gateway cities such as Boston and Philadelphia continue to balance tourism, institutional, and corporate demand, while select secondary markets including Providence, Hartford, and emerging university and medical hubs draw targeted investment interest.
Capital structures emphasize conservative leverage, strong sponsor experience, and thoughtful renovation or conversion plans, with bridge, CMBS-like, and LifeCo executions used to recapitalize or reposition institutional-quality assets.
Evaluating a hospitality acquisition, refinance, recapitalization, or renovation across any U.S. region? GET FINANCING →
About Cornovus Capital
With over 70 years of combined experience, Cornovus Capital is a trusted financial partner specializing in business financing, commercial real estate lending, and hospitality funding solutions. We design customized capital strategies that help businesses acquire, expand, and optimize operations, ensuring long-term growth and financial stability across multiple market cycles.
Our expertise spans CMBS and LifeCo financing, private capital solutions, structured debt strategies, SBA 7(a) and 504 loans. By focusing on certainty of execution, disciplined underwriting, and closing assurance, we guide businesses and investors through complex capital markets environments, securing financing aligned with long-term ownership and investment objectives.
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These hospitality market updates draw on multiple third-party data sources and industry analyses believed to be reliable; however, information is provided for informational purposes only and may include errors, omissions, or timing lags. Cornovus Capital makes no representations or warranties as to the accuracy, completeness, or fitness of the information presented.
Nothing herein constitutes financial advice, investment guidance, or a recommendation to originate, acquire, or restructure any specific financing. Market conditions and lender appetite are subject to change without notice. Sponsors should consult their own advisors and conduct independent underwriting before making financing or investment decisions.
By accessing these materials, the reader waives all claims against Cornovus Capital arising from reliance on the information or opinions expressed. Reproduction or redistribution of this content requires prior written consent from Cornovus Capital.