Cloudbeds, the intelligent unified platform powering hotel growth, today released its 2026 State of Independent Hotels Report, the fourth annual edition of the hospitality industry's definitive benchmark for independent hotel performance. Compiled from 90 million bookings spanning tens of thousands of properties in 180 countries, the report delivers a detailed quantitative view of 2025 performance across global independent hotel markets. The central finding is one of accelerating divergence: across key performance metrics, independent hotels lost ground relative to OTAs in 2025. Yet the data also surfaces regional bright spots and behavioral shifts that point to meaningful opportunities for operators who respond strategically.
According to Adam Harris, CEO of Cloudbeds, '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.'
The report's analysis of 2025 traveler booking behavior surfaces seven structural shifts with direct implications for independent operators. Demand softened across independent hotels: 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, a stark contrast to 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: ADR fell 16.2% and RevPAR dropped 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: 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: travelers booked an average of 40 days in advance in 2025, up from 38 days in 2023, with North America and EMEA leading at 48 and 47 days, respectively. Cancellation lead times grew: 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 continue to dominate: more than two-thirds of bookings were one to two nights, though bookings of 7 nights surged 25% year over year, signaling emerging extended-stay demand.
The full report includes regional performance breakdowns, country spotlights, booking behavior analysis, and expanded trend analysis with actionable recommendations for independent operators. The report is available for download at Cloudbeds Hospitality Industry Report.
