U.S. hoteliers predict a substantial rise in group sales by 2025, driven by demand growth from the tech, healthcare, and construction sectors. This growth is evident in the increased bookings at resorts, upscale, midscale, and economy hotels across major brands like Marriott International, Hilton, and Hyatt Hotels Corp.

Major U.S. hotels project a significant increase in group sales by 2025, indicating a promising recovery in group demand. This growth is attributed to increased demand from industries such as technology, healthcare and construction. Resorts and upscale properties have witnessed larger bookings due to demand from the tech, medical, and healthcare industries. Simultaneously, construction and infrastructure activities have increased group business at midscale and economy hotels.

Marriott International, Hilton, and Hyatt Hotels Corp. projected an increase in 2025 group bookings during their February earnings calls. IHG Hotels & Resorts, Wyndham Hotels & Resorts, and resort specialist Peregrine Hospitality also indicated rising group sales.

Marriott International’s group revenue, which accounted for almost a quarter of the company’s booked room nights, increased by 8% last year. The CEO, Tony Capuano, announced the group bookings were pacing up 6% for 2025 as of last year’s end. Similarly, Hyatt’s pace of group bookings for 2025 was up 7% from the previous year.

Despite concerns about potential reductions in federal spending by the Trump administration, hotel companies remain optimistic about continued growth in group demand throughout the year. Angie Gadwood, senior vice president of sales at Wyndham, believes that business travel is reverting to the new normal, citing healthy trends.

Infrastructure projects, often funded wholly or partially by the federal government, drive much of Wyndham’s group business. Peregrine Hospitality COO Pete Sams expressed confidence that a new presidential administration eager to leave the pandemic behind would be a net positive for hotels banking on more group demand.

Group sales at resorts appear to be experiencing the fastest growth. Peregrine Hospitality projects its 2025 group revenue to increase by 18% from the previous year. The company’s volume of lead calls is up 25%, reveals Chris Riccardi, Peregrine’s senior vice president of global sales strategy.

These expectations align with industry forecasts that predict group business will spur higher U.S. room demand for the remainder of the year. CBRE’s February report predicts that U.S. revenue per available room will grow 2% this year, primarily due to higher demand within larger U.S. markets.

Despite the slowest growth in overall hotel demand since the pandemic, operators are hopeful for a reprieve in the form of increased group demand. Cities that frequently attract groups and conventions, such as Chicago and New York, have outperformed the overall market.

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