AH September 2025

News

13

www.asianhospitality.com

September 2025 | Issue 240

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otel companies grew brand

portfolios and loyalty programs

over the past decade, according

to CBRE. RevPAR grew as well, though

inflation cut into profits.

The number of brands increased at 7

percent compound annual growth rate

during the last 10 years, while loyalty

program memberships rose 15 percent,

according to CBRE’s “Hotel Brand

Performance 2025.” Brand families

including Choice, Hilton, Hyatt,

IHG Hotels & Resorts, Marriott, and

Wyndham doubled their portfolios to

an average of 24 brands each between

2014 and 2024.

CBRE found that adding brands has

not consistently driven higher RevPAR

growth since 2019, as the fastest-

growing brand family by number

of brands, with a 15 percent CAGR,

recorded the lowest median RevPAR

CAGR at 0.3 percent.

Brand proliferation may increase

loyalty membership but can correlate

negatively with RevPAR within the

same family, the report said. Some

additions, such as glamping or all-

inclusive resorts, expand redemption

options for loyalty points valued

at more than $12 billion. Others,

including middle-tier conversion and

extended-stay brands, grew more than

40 percent in the past five years and

may cannibalize existing properties.

RevPAR growth and

inflation

RevPAR grew at a 1.8 percent CAGR

from 2019 to 2024, 20 basis points

above 2014–2019, while inflation rose

from 1.6 percent to 4.2 percent, eroding

real gains. Since 2019, nominal RevPAR

increased 9.3 percent but fell 10.9

percent in real terms as alternative

lodging supply and hotel inventory

growth outpaced demand, reducing

pricing power across segments.

Around 52 percent of

brands posted RevPAR

gains above the sample

CAGR average of 1.6

percent from 2014 to

2019. However, since

2019, 28 percent have

exceeded the 1.8 percent

average.

The gap between the

strongest and weakest

brands has widened

across chain scales, with

the luxury segment’s

RevPAR spread rising to

nearly seven percentage

points in 2019 to 2024

from five points in 2014 to 2019. The

strongest luxury brand’s cumulative

RevPAR premium rose to 41 percent

from 29 percent over the same periods,

indicating greater performance

variability within segments, CBRE said.

Upper-midscale hotels have

increased at a 5.8 percent CAGR since

2015, supporting demand stability. They

recorded the highest RevPAR CAGR

of any chain scale at 2.2 percent from

2014 to 2019 and 2.3 percent from 2019

to 2024. Midscale and economy chains

recorded the slowest RevPAR growth

from 2019 to 2024, with declines of 3.2

percent and 1.9 percent, respectively.

Study: Brands, loyalty programs

see decade of growth

RevPAR grew 1.8 percent CAGR in 2019–2024 from 2014–2019

Major hotel companies grew brand portfolios at a 7 percent CAGR and loyalty

program memberships at 15 percent over the past decade, according to CBRE.