Hospitality Recovery Trends: Key Markets for Hotel Development

The hospitality industry has made a strong comeback, with increased travel demand across leisure, business, and extended-stay markets. U.S. hotel occupancy is projected to reach 63.38% in 2025, just 2.4 percentage points shy of pre-pandemic levels, while room demand exceeded 1.3 billion room nights sold in 2023—a clear signal of sustained recovery (Lightbox, 2025). Cities with vibrant tourism, event spaces, and growing corporate presences have been the first to recover, leading to renewed interest in hotel development. Markets such as Orlando, Las Vegas, Miami, and Austin have experienced significant rebounds, with increased bookings for conventions, leisure travel, and business stays. Boutique and lifestyle hotels, in particular, have gained traction, as travelers seek unique and experience-driven accommodations. 

Another growing trend within hospitality development is the rise of extended-stay properties. The extended-stay market is projected to more than double from $62.8 billion in 2025 to $143.2 billion by 2035, driven by hotels that blend traditional services with residential-style amenities (TTW, 2025). With more remote workers and corporate travelers looking for long-term accommodations, hotels that blend traditional hospitality with residential-style amenities are seeing high occupancy rates. At the same time, technology integration in hotels has become a necessity, with smart check-in systems, AI-driven concierge services, and automation enhancing guest experiences. 

HALL Structured Finance (HSF) has been actively providing financing for hotel developments in key recovery markets. As demand for hospitality assets continues to grow, HSF ensures developers can secure the funding needed to bring their projects to market efficiently. The resurgence of hospitality presents a valuable investment opportunity, and with HSF’s expertise in hospitality financing, developers can confidently navigate this growing market.