How US Hotel Giants Marriott, Hilton, Hyatt, Wyndham, Choice, IHG Tackling Market Slowdown, New Report for Travel Industry

Published on August 11, 2025

By: Tuhin Sarkar

How US hotel giants Marriott, Hilton, Hyatt, Wyndham, Choice, IHG are tackling the market slowdown is a story of resilience, strategy, and adaptation. In 2025, the US hotel market is facing headwinds. Economic uncertainty, high interest rates, and changing travel patterns are slowing growth. Yet Marriott, Hilton, Hyatt, Wyndham, Choice, IHG are not standing still.

These US hotel giants are focusing on their strengths. They are expanding globally, improving guest experiences, and investing in technology. While the slowdown is real, the response from Marriott, Hilton, Hyatt, Wyndham, Choice, IHG is proactive. They are targeting luxury markets, strengthening loyalty programmes, and supporting franchise partners. As travel demand shifts, US hotel giants Marriott, Hilton, Hyatt, Wyndham, Choice, IHG are showing how to navigate change. Their combined actions highlight the power of innovation and planning in tackling a market slowdown.

The US hotel industry in 2025 is in a period of mixed results. Big global brands based in the United States are still earning strong profits, but growth at home has slowed. Many companies have lowered their forecasts for the year. High interest rates, inflation, and weaker leisure travel for budget hotels are the main reasons. Yet, global demand, high-end travel, and strong pipelines of new hotels are keeping the industry steady. This report looks at how each major hotel brand is performing, what challenges they face, and what they are doing to stay competitive.

The State of the US Hotel Market

The growth of revenue per available room (RevPAR) in the US has slowed to under 1% for 2025. This is a big change from the strong rebound seen after the pandemic. The reasons are clear. The US economy is growing slowly. Interest rates are high, making loans more costly for hotel projects. Inflation is still affecting the cost of living. For budget-conscious guests, this means fewer trips or shorter stays.

Luxury hotels are doing better. Their RevPAR has grown by about 7% this year. Economy hotels have seen almost no growth. Higher-end guests still travel for leisure and business. Inbound tourism from other countries has dropped, hurting many US cities that rely on overseas visitors. Travel by US government workers has also fallen. Both have been noted by hotel CEOs as reasons for weaker results.

Marriott International

Marriott’s stock is trading near record highs. The company’s fee-based model and wide brand portfolio keep it profitable even when US growth slows. In the second quarter of 2025, Marriott reported a small earnings beat, but US and Canada revenue was flat. Luxury brands like Ritz-Carlton did well, but select-service brands such as Courtyard saw declines.

Marriott has lowered its global RevPAR forecast to between 1.5% and 2.5% for 2025. International markets remain strong, with double-digit RevPAR growth in Europe and Asia. The company has also expanded its lifestyle offering by acquiring the citizenM brand. This adds more than 30 hotels and aims to attract younger, urban travellers. Analysts are confident in Marriott’s long-term growth thanks to its global reach and strong loyalty programme.

Hilton Worldwide

Hilton has also seen its stock hit record highs in 2025. In the second quarter, global RevPAR dropped slightly, pulled down by a 4% decline in the US. Economic uncertainty and softer leisure demand hurt results. However, Hilton is growing fast in terms of hotel count. Its system size has increased by 7.5% year-on-year, with a record development pipeline.

Earnings rose in the second quarter, and Hilton returned almost $800 million to shareholders in buybacks and dividends. The company has narrowed its full-year RevPAR guidance to between 0% and 2% growth. Analysts still see Hilton as a strong player due to its global scale, brand strength, and asset-light franchise model.

Hyatt Hotels Corporation

Hyatt’s performance in 2025 reflects its focus on the high end of the market. Global RevPAR rose by 1.6% in the second quarter. Luxury and upper-upscale hotels led the way, while select-service hotels in the US declined.

Hyatt is expanding rapidly, with net room growth of nearly 12% year-on-year. It has added luxury all-inclusive resorts through an acquisition and launched a new lifestyle midscale brand, Unscripted by Hyatt. This brand aims to convert independent hotels into Hyatt properties. Hyatt’s asset-light strategy and strong international presence are helping it maintain steady growth despite the weaker US market.

Wyndham Hotels & Resorts

Wyndham focuses on the economy and midscale segments. These segments are facing the toughest conditions in 2025. Global RevPAR fell by 3% in the second quarter, with the US down by 4%. Inflation and economic worries are hitting budget travellers hardest.

Despite this, Wyndham’s net income rose thanks to higher franchise fees and cost control. The company grew its system size by 4% and reached a record pipeline of 255,000 rooms. It has also invested in technology to support franchise owners, including an AI-driven guest engagement platform. Wyndham expects US RevPAR to fall by about 2% this year but sees long-term growth in its strong pipeline.

Choice Hotels International

Choice Hotels, another franchisor focused on midscale and economy brands, also faced a drop in RevPAR. In the second quarter, US RevPAR fell by 2.9%. The company has lowered its full-year forecast to between a 3% decline and flat growth.

Choice has found strength in extended-stay and upscale segments. Brands like WoodSpring Suites have performed better than the market average. The company is also expanding internationally, having bought full control of Choice Hotels Canada. This opens the door to introduce all its brands in Canada. Analysts see Choice as a steady operator with potential upside if the US market recovers or international demand grows.

InterContinental Hotels Group (IHG) – Americas

IHG is a UK-based company but has a large presence in the US. In the first half of 2025, its Americas region saw RevPAR rise by 1.4%. Like other chains, its high-end and midscale brands are performing better than economy offerings.

IHG has grown its global room count by over 5% year-on-year and opened a record number of hotels in the first half of the year. The company is on track to return over $1.1 billion to shareholders in 2025. Its global diversification and strong pipeline position it well for the future, even as the US market remains slow.

What’s Driving the Market

The hotel industry’s mixed performance in 2025 is shaped by the economy, consumer behaviour, and travel trends. Luxury travel and international markets are keeping big brands profitable. Budget and select-service segments are under pressure from weaker demand. High interest rates and inflation are slowing new projects and making it harder for price-sensitive guests to travel.

Inbound international travel to the US is still below pre-pandemic levels. Visa delays and other barriers have reduced visitor numbers. Government travel budgets have also been cut. On the positive side, business and group travel are holding up, especially in premium segments.

Outlook for the Rest of 2025

Most hotel companies expect demand to improve in the second half of 2025. Forecasts for RevPAR growth are modest, but the low supply of new hotels should help support rates and occupancy. International demand and high-end leisure travel are likely to remain strong.

Investors are confident in the long-term growth of the travel industry. The largest hotel companies are focusing on expanding their global presence, growing their loyalty programmes, and investing in technology. Even with short-term challenges, these strategies should help them weather economic uncertainty.

In 2025, US-based global hotel brands are showing resilience in the face of slower domestic growth. Luxury and international markets are driving earnings, while budget segments adapt to softer demand. Marriott and Hilton are leading with strong pipelines and brand strength. Hyatt is growing in the luxury and lifestyle space. Wyndham and Choice are focusing on franchise growth and technology. IHG is expanding globally and benefiting from its broad brand mix.

The industry is in a slower gear, but the fundamentals remain strong. With steady demand in high-value segments and global diversification, the major hotel brands are well-placed to benefit when the US market gains momentum again.

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