US corporate hotel bookings fell by nearly 10 per cent in 2025 compared with the previous year, according to data from HotelHub.
The hotel booking specialist said that year-on-year bookings at US hotels dropped by 9.43 per cent, with international bookings down by 7.56 per cent and an even steeper fall of 9.73 per cent for domestic US bookings. The figures are based on 7.5 million transactions made through HotelHub technology in 2025.
In its report for the final quarter of 2025, HotelHub said the volume of international hotel bookings for the US “began to shrink from April onwards, after the announcement of the new administration’s changes to foreign trade policy”.
While the figures for the US hotel market “fluctuated” throughout 2025, international hotel bookings in the US slumped by 17.4 per cent in December compared with the same month in 2024.
By contrast, Canada saw total hotel bookings rise by 6.14 per cent year-on-year, which was achieved despite a significant fall of 18.76 per cent in bookings from the US. Canada’s domestic bookings shot up by 12.15 per cent in 2025, while there was also year-on-year growth from inbound markets such as the UK and Australia.
Despite the year-on-year fall in bookings, the US remained the most booked country for HotelHub in 2025 followed by France, the UK, Italy and Germany.
Most of these top five markets also saw a year-on-year drop in hotel bookings, with France down by 4.5 per cent compared with 2024, while UK bookings dropped by 4.4 per cent and Germany by 12.1 per cent. Only Italy saw an annual increase in bookings of 2.3 per cent in 2025.
On a global basis, HotelHub said there was a 6.3 per cent rise in average nightly rates to $198 in the fourth quarter, with rates for the whole of 2025 going up by 3.13 per cent year-on-year to an average of $189 per night.
During 2025, average spend per booking went up by 1.25 per cent year-on-year to $460, while booking lead times slightly lengthened by 2.1 per cent to 16.46 days. But average length of stay declined slightly by 1.6 per cent to 2.43 days compared with 2024.
The report noted “above inflation” year-on-year rises in hotel rates in many European cities during 2025. This included an 11.63 per cent rise in Madrid where average rates went up from $200 in 2024 to $223 last year.
Other cities to see significant rises were Stockholm where rates rose 9.5 per cent from $181 in 2024 to $199 in 2025, and Munich, which saw a 10.21 per cent rise from $193 to $213 over the same period.
Across Europe, average rates were up 4.7 per cent in 2025 to $178 per night, with an average stay of 1.98 days and booking lead-in time of 14.1 days.
Rates in US cities were down by 1.33 per cent year-on-year in 2025, with falls in cities such as Los Angeles, Seattle and Washington DC. Although, New York bucked this downward trend, with nightly rates in the city rising by 5.9 per cent from $419 in 2024 to $445 last year.
In 2025, London was the most booked city through HotelHub technology, followed by Paris, New York, Stockholm and Rome.
Paul Raymond, HotelHub’s chief commercial officer, said its data illustrated a “volatile year” for business travel in 2025, which had been “dominated by inconsistent US policies”.
“This new status quo looks unlikely to change given the events of the first few weeks of the year,” added Raymond.
“However, 2026 has already seen moves by the UK, Canada and the EU to forge new trade partnerships with countries like China and India, so it will be interesting to see if these efforts have any stabilising effect in the coming months and what it will mean for business travel around the world.”
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