Each year, HVS researches and compiles development costs from our database of actual hotel construction budgets. This source now provides the basis for our illustrated total development costs per room/per product type.
Industry Insights
Indian Hotel Sector: 2025 in Review
2025 was a year of steady progress for India’s hotel sector, marked by strong domestic demand and the ability to absorb disruption without losing momentum. Here’s a closer look at what shaped the year.
Sustainable Hotel and Resort Development in the Caribbean: Strategies for a Resilient Hospitality Future
For hotel and resort developers, owners, and operators, the mandate is clear: sustainability is no longer a differentiator but, instead, a central pillar of long-term competitiveness and asset protection. This article examines the strategic, operational, and design considerations that define successful sustainable development in the Caribbean.
HVS ANAROCK MONITOR, December 2025
This is a monthly industry update that highlights the key trends in the Indian hospitality industry.
HVS Global Perspectives – Year-End 2025
In this article, we provide the market opinions of key HVS global leaders in many different regions of the world. HVS operates across the world, and regional leaders are keenly aware of the dynamics and trends that are influencing performance, profitability, and value.
Paid Publication
HVS MarketCast Report
Order the HVS MarketCast Report for a five-year forecast of annual occupancy and ADR for any desired market area in the U.S. Let HVS do the work of poring over economic indicators, recent market trends and market insights, changes to existing supply, and the entrance of new supply for a forecast of future performance.
$750 Single Market (Bulk Discounts Available)
The tailor-made HVS MarketCast Report assists hotel owners, property managers, and asset managers in forecasting future property performance by having a well-developed HVS market forecast for comparison. Enhancing the forecasting process is essential to setting the right plans in place to optimize a lodging facility’s profitability, and the HVS MarketCast Report can help.
Data are by year for the selected market area:
- Occupancy
- Average Rate (ADR)
- RevPAR
Summary insights that influenced the forecast are also included. The file is provided in PDF format.
For more information or a sample report, please contact Rod Clough at [email protected].
Hotel Profitability in Transition: Cost Pressures and Budgeting Priorities for 2026
Recent HVS data show gross operating profit margins declining broadly, driven by increases in labor, operating standards, and shared-service allocations. With ADR growth anticipated to flatten, revenue can no longer absorb rising costs. As hotels convert less revenue into profit, owners must rely on active asset management, benchmarking, and operational realignment to protect NOI in 2026.
Paid Publication
HVS U.S. Franchise Fee Guide, 2025 Edition
The HVS U.S. Franchise Fee Guide is a study authored by industry experts and based on extensive research and analysis of the hotel franchising industry. Selecting an appropriate franchise affiliation for a property should include extensive research and investigation by an investor.
Our findings encompass a total of 93 hotel brands, as franchisors for 20 economy,13 midscale, 19 upper-midscale, 21 upscale, and 20 first-class brands participated in this annual analysis. The study highlights the importance of partnering with the right franchise company and is an essential resource for anyone interested in investing in the hotel industry or looking to expand their existing portfolio.
Hotels are complicated investments. The information presented in this guide was developed to provide insight into franchise-fee structures and should not be relied upon by an investor for any purpose other than as a preliminary resource. The study results are not necessarily indicative of the impact a brand may have on an individual hotel’s overall profitability because the benefits of the franchise affiliations have not been analyzed, only the costs. Furthermore, the study does not reflect or address the operating results of any one brand or any particular brand affiliation upon any single hotel property.
Our U.S. Franchise Fee Guide is meant to illustrate a basic comparison among franchise fees charged by participants. HVS has extensive experience with assisting clients in selecting the appropriate franchise affiliation for their proposed or existing hotels. Our services also include assisting with or managing the negotiations in coordination with experienced attorneys and other industry professionals. For more information on this publication or brand selection in general, please contact Kannan Sankaran at [email protected] or +1 (703) 508-1749.
Houston Hotel Submarket Performance: Nominal Gains and Real-Dollar Context
Greater Houston’s lodging market is stabilizing, with distinct performance differences across submarkets. While 2024 posted strong results lifted by major events and weather-related displacement, inflation-adjusted levels show that real-dollar gains over 2019 are more modest. As 2025 has unfolded, differences between the city and outlying submarkets have become clearer as the market returns to more typical operating patterns.
Grand Rapids, Michigan: A City on the Rise
Named the number-one “City on the Rise” in 2025 by LinkedIn, Grand Rapids is supported by major healthcare, grocery, and manufacturing employers. Several major developments are set to reshape the city’s landscape and strengthen hotel demand in the years ahead, including a new riverfront amphitheater, a professional soccer stadium, and an airport expansion.
Israel’s Tourism and Hospitality Outlook – From Recovery to Reinvention
This article examines Israel's tourism and hospitality industry, hotel investment and transactions market and the likely speed of recovery following the end of the war. It also discusses to what extent Israel's operational resilience, strategic flexibility and the untapped potential of the Abraham Accords will allow its tourism industry to recover.
Thought Leadership
We have written thousands of articles about all aspects of hospitality, including hotel valuations, investing, lending, operations, asset management, and much more.
Each year, HVS researches development costs from our database of actual hotel construction budgets, industry reports, and franchise disclosure documents. These sources provide the basis for our range of component costs per room.
Though historically associated with residential and low-rise commercial buildings, modular construction has gone more upscale in recent years. What are the benefits, and what should hotel developers consider before going modular?
This article reviews the main terms of hotel management contracts in Europe. The terms provided are broad indications only, and can vary significantly depending on element such as asset class, location, brand, operator and type of investor.
In response to rising demand for unique designs, developers are turning to adaptive reuse as a means of creating one-of-a-kind hotels. Historic building conversions come with their own sets of challenges, balanced by potential rewards.
For 2017, the highest RevPAR growth is anticipated for markets such as Sacramento, Washington D.C., Tucson, Chicago, Salt Lake City, Albuquerque, Houston, and Nashville, per the ALIS presentations.
Demand from a variety of sources has risen in Chicago, pushing occupancy to a ten-year high in 2015. More than 6,000 new rooms are expected in the market over the next three years, though average rates and hotel values should continue to grow.
Job growth in the Austin-Round Rock MSA, especially with respect to highly skilled, highly educated positions, ranks among the best in the nation.
Asheville’s hotel industry thrives on tourism, though other demand segments have been making headway. A rise in occupancy and average rate over the past several years is expected to continue, driving hotel development in the city’s downtown.
Investment out of mainland China in U.S. hotel real estate has been on the rise for years. What’s driving the trend, and how has it affected hotel markets in the U.S.?
Robust demand in urban centers continues to drive Canadian hotel values despite high interest rate environment.