CBRE Hotels Forecasts Steady 2025 Growth in South Florida as Urban Locations Continue to Outperform

CBRE forecasts that revenue per available room (RevPAR) across key South Florida markets will continue to grow steadily in 2025, as urban locations continue to outperform due to improved group and business travel and the continued recovery of inbound international travel.

• In Fort Lauderdale, CBRE forecasts a 2.4% increase in RevPAR growth in 2025, with occupancy improving by 0.9% and average daily rate (ADR) increasing by 1.4%.
• In Miami, RevPAR is forecasted to increase 0.8% in 2025, with occupancy improving by 0.2% bps and ADR increasing by 0.6%.
• In West Palm Beach, RevPAR is forecasted to increase 0.2% in 2025, with occupancy falling by -1.1% and ADR increasing by 1.3%.

This projected growth highlights the ongoing recovery of the lodging industry in Fort Lauderdale, Miami, and West Palm Beach with RevPAR expected to be 16.5%, 21.7%, and 28.4% higher, respectively, in 2025 compared with pre-pandemic levels in 2019.

“The overall fundamentals of South Florida’s hotel market remain solid, particularly as new supply continues to be relatively restrained,” said Scott Webb, a Boca Raton-based Vice President of Valuations & Advisory Services with CBRE. “We expect this to remain true at least for the near future.”

CBRE’s baseline forecast includes a 2.4% GDP growth rate and average inflation of 2.5% for 2025. Given the typically strong correlation between GDP and RevPAR growth, the relative strength of the economy will directly impact the lodging industry’s performance.

“The U.S. hotel market is poised for steady growth in 2025, primarily led by continued outperformance of the urban segment, which should experience RevPAR growth of 2.8% this year,” said Rachael Rothman, CBRE’s Head of Hotel Research & Data Analytics. “The sector’s resilience and the sustained demand for higher-priced hotels bode well for the upcoming year.”

CBRE projects RevPAR growth within the 1.5% to 3.5% range over the next several years, barring a recession, bolstered by numerous planned events including the 2026 FIFA World Cup held in the U.S., Mexico and Canada; the 2028 Summer Olympics in Los Angeles; and the United States’ 250th anniversary in 2026, along with the ongoing appeal of national parks, global gateway cities, and U.S. leisure destinations.

“Despite existing cost pressures the U.S. hotel market fundamentals remaining robust, we anticipate a resurgence in investment activity in the latter half of 2025,” said Bill Grice, President of CBRE Hotels in the Americas. “With ample dry powder available and the potential for a lower Fed funds rate before year-end, we expect to see a narrowing of buyer and seller expectations, fueling increased transaction activity.”

CBRE expects restrained supply growth due to high financing and construction costs, averaging less than 1% over the next three years. Potential additional tariffs, labor shortages or the Fed pulling back on further interest rate reductions could temper supply growth even more, enhancing pricing leverage and elevating replacement costs for existing assets.

The February 2025 edition of Hotel Horizons for the U.S. lodging industry, 65 major markets, the six hotel chain scales and six location types can be purchased by visiting: https://pip.cbrehotels.com/hotelhorizons. CBRE’s baseline forecasts do not contemplate an international war or a pervasive recession. CBRE also produces forecasts based on upside and downside scenarios.