The report identifies a widening gap in performance, with independent hotels losing ground relative to online travel agencies (OTAs), while also highlighting regional variations and evolving traveller behaviour patterns.
Adam Harris, CEO of Cloudbeds, said: “2025 told many different stories for Independent hotels, and that divergence is only the beginning. With AI reshaping discovery, OTA dependence deepening, and margin pressure mounting, independent lodging has never needed clarity more. This report gives operators the sharpest view yet of the forces reshaping their market and most importantly, it provides a path forward.”
According to the findings, demand softened across independent hotels in 2025, with global occupancy declining by 0.6% year-on-year. Average daily rate (ADR) fell by 5.8%, while revenue per available room (RevPAR) decreased by 5.4%.
Regional performance showed significant variation. EMEA recorded growth, with ADR increasing by 6.0% and RevPAR by 3.9%. In contrast, Asia Pacific experienced the sharpest declines, with ADR down 16.2% and RevPAR decreasing by 17.5%. North America saw moderate declines overall, although Canada reported RevPAR growth of 6.0%, while the United States recorded a decline of 4.4%.
The report highlights increased reliance on OTAs, with their share of bookings rising to 63.4%, and reaching nearly 80% in some markets. Cancellation rates for OTA bookings reached 21.8%, more than double the 10.6% recorded for direct bookings.
Booking behaviour also shifted, with the average booking window extending to 40 days in advance, compared to 38 days in 2023. North America and EMEA recorded the longest booking windows at 48 and 47 days respectively.
Cancellation lead times also increased, with the average window expanding to 39 days, up from 35 days in 2023, providing operators with greater visibility to manage inventory.
Short stays remained dominant, with more than two-thirds of bookings lasting one to two nights. At the same time, bookings of seven nights increased by 25% year-on-year, indicating growing demand for extended stays.
Tags: Adam Harris, Cloudbeds
