A mixed picture. Indicators aren’t all flashing the same colour. ADR’s September bounce faded, with October likely below October 2024 and further softness expected into January—most acute in gateway cities. PMIs are broadly neutral, but construction (the better proxy for workforce travel) remains in contraction.
Competing pressures: rising employment taxes and weak leisure are squeezing hotels, while RFP season is injecting selective price competition. Chains have sometimes held rate at the expense of demand, creating room for independents—especially with fitness/wellness—to win share and deliver better traveller value at flat or lower prices.
- Low ADR (Average Daily Rate) development vs 2024 (post-September softness; gateway exposure)
- Changing external pressures (April tax rises; labour-intensive sectors under strain)
- Business travel confidence polarized (Composite PMI ~50, construction <50) with independents stepping up
Net-net: Savings are available, but not always from traditional chains—look wider to independents and regional options, and leverage market-wide visibility during RFPs to capture value.
