Cloudbeds, the intelligent unified platform powering hotel growth, today released its 2026 State of Independent Hotels Report, the fourth annual edition analyzing independent hotel performance. Compiled from 90 million bookings across tens of thousands of properties in 180 countries, the report provides a detailed quantitative view of 2025 performance and reveals accelerating divergence between independent hotels and OTAs.
The central finding is that independent hotels lost ground relative to OTAs in 2025 across key performance metrics. 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, starkly contrasting with branded hotel performance. However, the data also surfaces regional bright spots and behavioral shifts that point to meaningful opportunities for operators who respond strategically.
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."
Key findings from the report's analysis of 2025 traveler booking behavior include several structural shifts. 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 to an average of 40 days in advance, up from 38 days in 2023, with North America and EMEA leading at 48 and 47 days, respectively. 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, with more than two-thirds of bookings being one to two nights. However, bookings of seven nights surged 25% year over year, signaling emerging extended-stay demand. Regionally, 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%.
The full report includes regional performance breakdowns, country spotlights, booking behavior analysis, and expanded trend analysis with actionable recommendations for independent operators. It is available for download at Cloudbeds' hospitality industry report page.
