Cloudbeds, the intelligent unified platform powering hotel growth, released its 2026 State of Independent Hotels Report, the fourth annual benchmark for independent hotel performance. Compiled from 90 million bookings across tens of thousands of properties in 180 countries, the report provides a detailed quantitative view of 2025 performance across global independent hotel markets. The central finding is one of accelerating divergence: independent hotels lost ground relative to OTAs across key performance metrics, though regional bright spots and behavioral shifts point to opportunities for operators who respond strategically.
According to the report, demand softened across independent hotels in 2025. Global occupancy slipped 0.6% year over year, while average daily rate (ADR) and revenue per available room (RevPAR) declined 5.8% and 5.4% respectively. This contrasts sharply with branded hotel performance over the same period. Regional performance split sharply: 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 significantly. OTA share of independent hotel bookings rose to 63.4%, with some markets approaching 80%. OTA cancellation rates hit 21.8%, more than double the 10.6% rate for direct bookings. Booking windows lengthened, with travelers booking an average of 40 days in advance in 2025, up from 38 days in 2023. Cancellation lead times also grew, expanding to 39 days 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, though bookings of 7 nights surged 25% year over year, signaling emerging extended-stay demand.
Adam Harris, CEO of Cloudbeds, stated, "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, provides a path forward." The full report includes regional performance breakdowns, country spotlights, booking behavior analysis, and expanded trend analysis with actionable recommendations for independent operators. It is available for download at https://www.cloudbeds.com/hospitality-industry-report/.
