Cloudbeds released its 2026 State of Independent Hotels Report, analyzing 90 million bookings from tens of thousands of properties across 180 countries. The report highlights a challenging year for independent hotels in 2025, with global occupancy slipping 0.6% year over year, while average daily rate (ADR) and revenue per available room (RevPAR) declined 5.8% and 5.4%, respectively. This performance contrasts sharply with branded hotels, which fared better over the same period.
Regional performance varied significantly. Europe, the Middle East, and Africa (EMEA) was the lone bright spot, with ADR rising 6.0% and RevPAR advancing 3.9%. Asia Pacific recorded the steepest declines, with ADR falling 16.2% and RevPAR dropping 17.5%. North America posted modest declines overall, though Canada outperformed with RevPAR growth of 6.0%, while the U.S. declined 4.4%.
OTA dependence deepened, with OTA share of independent hotel bookings rising to 63.4%, and some markets approaching 80%. OTA cancellation rates hit 21.8%, more than double the 10.6% rate for direct bookings. Booking windows lengthened to an average of 40 days in 2025, up from 38 days in 2023, with North America and EMEA leading at 48 and 47 days, respectively. The average cancellation window expanded to 39 days, up from 35 in 2023, providing operators with greater advance notice and a wider opportunity to resell inventory.
Short stays continued to dominate, with more than two-thirds of bookings being one to two nights. However, bookings of seven nights surged 25% year over year, signaling emerging extended-stay demand. The full report, including regional performance breakdowns, country spotlights, and actionable recommendations, is available for download at Cloudbeds' hospitality industry report.
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.'
Cloudbeds, founded in 2012, is a unified platform trusted by hoteliers across 150 countries. The platform connects operations, revenue, distribution, and guest experience, and is enhanced with Signals, a hospitality AI model. Cloudbeds has earned top honors from Hotel Tech Report, the World Travel Awards, and Deloitte's Technology Fast 500.
