Cloudbeds, the intelligent unified platform powering hotel growth, released its 2026 State of Independent Hotels Report on March 25, 2026. The fourth annual edition, compiled from 90 million bookings across tens of thousands of properties in 180 countries, provides a detailed quantitative view of 2025 performance for independent hotels globally. The central finding is one of accelerating divergence, with independent hotels losing ground relative to OTAs across key performance metrics, though regional bright spots and behavioral shifts present opportunities for strategic operators.
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, contrasting sharply with branded hotel performance. Regional performance split sharply, with EMEA being the lone bright spot as ADR rose 6.0% and RevPAR advanced 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, with OTA share of independent hotel bookings rising to 63.4%, and 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. North America and EMEA led at 48 and 47 days, respectively. Cancellation lead times also 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 continued to dominate, with more than two-thirds of bookings being one to two nights. However, bookings of 7 nights surged 25% year over year, signaling emerging extended-stay demand. The full report, available for download at https://www.cloudbeds.com/hospitality-industry-report/, includes regional performance breakdowns, country spotlights, booking behavior analysis, and expanded trend analysis with actionable recommendations for independent operators.
Adam Harris, CEO of Cloudbeds, noted, “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.”
