Cloudbeds released data findings from its 2026 State of Independent Hotels Report, the fourth annual edition providing 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, with independent hotels losing ground relative to Online Travel Agencies across key performance metrics in 2025.
Adam Harris, CEO of Cloudbeds, stated that 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 provides a path forward. The analysis of 2025 traveler booking behavior surfaces seven structural shifts with direct implications for independent operators.
Demand softened across independent hotels with global occupancy slipping 0.6% year over year, while Average Daily Rate and Revenue Per Available Room declined 5.8% and 5.4% respectively. This represents a stark contrast to branded hotel performance over the same period. Regional performance split sharply, with EMEA emerging as 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 with OTA share of independent hotel bookings rising 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 as 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 with the average cancellation window expanding 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 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. The full report includes regional performance breakdowns, country spotlights, booking behavior analysis, and expanded trend analysis with actionable recommendations for independent operators. The State of Independent Hotels Report 2026 is available for download at https://www.cloudbeds.com/hospitality-industry-report/.
