The Cost of Franchising – Core and Soft ...Middle East

U.S. lodging demand increased at an average annual rate of just 0.7% in 2023 and 2024, after two years of double-digit growth coming out of the pandemic in 2020. In the May 2025 edition of Hotel Horizons®, CBRE reduced its forecast for lodging demand growth in 2025 to 0.9%. With lodging demand growing at less than 1.0%, hotel owners and operators are scrutinizing the value of their franchise relationships since it is the primary stimulus of demand for most U.S. hotels.

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