This year is set to be the “year of optimizing performance” for independent hoteliers, according to the 2025 State of Independent Lodging Report from hospitality management software platform Cloudbeds.
Faced with persistent labor shortages, increased price sensitivity from travelers and a rising market share for branded hotels—which now represent 72% of all U.S. hotels—independent operators must sharpen their strategies to stay ahead.
Now in its third year, the report offers a unique, data-driven look into the global independent lodging segment, highlighting key insights and trends across a diverse range of property types that are often overlooked in industry reporting.
“Hospitality is fundamentally human—and independent properties represent its heart and soul,” said Adam Harris, cofounder/CEO, Cloudbeds.
Key findings from the report include:
- Occupancy trends indicate stabilization: Demand patterns remained steady in 2024, therefore independent hotels must focus on capturing market share to maintain occupancy levels in 2025.
- Pricing hits a ceiling: After years of rapid growth, the global ADR declined by 1% in 2024, reflecting softening demand and increased price sensitivity among travelers.
- OTAs continue to dominate: In 2024, online travel agencies (OTAs) captured 61% of all bookings for independent properties, which are far more reliant on OTAs than branded hotels.
Based on a wealth of aggregated and anonymized data from across the world, Cloudbeds has also identified five new trends poised to reshape the independent lodging market in 2025. These include the rise of value-driven travel, increased reliance on additional revenue streams, rising costs, labor shortages and high staff turnover, as well as the widespread adoption of AI in hotel operations.
The report’s findings are grounded in data from more than 20,000 independent properties in 150 countries. The results are divided into four regions: North America, Latin America (including Mexico), Europe, and Asia Pacific (including Australia and New Zealand).
