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Vacation rentals outpacing hotels across US

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The US vacation rental market is pulling ahead of the traditional hotel sector.

While much of the travel sector contended with shorter booking windows and uneven demand in Q2, vacation rentals have proved resilient, a new report suggests.

According to the Q2 2025 Vacation Rental Market Index by Key Data, STRs outperformed hotels in every region across the US, with an average RevPAR (revenue per available rental) advantage of 9 percentage points1.

Key Data is a major provider of real-time market intelligence and benchmarking for the global short-term rental industry.

The data covers 13 million listings, and signals the STR sector is evolving.

Still, its performance isn’t evenly distributed. While many operators are thriving, others are feeling the strain.

Key Data’s analysis reveals a widening divide between high-performing and under-pressure regions, and between operators actively adapting to change and those falling behind.

Several regions posted impressive year-over-year growth in RevPAR, including:

Mid-Atlantic: +11% RevPAR YoY, driven by a +10% increase in occupancy

New England: +10% RevPAR, bolstered by seasonal demand and premium pricing

Rocky Mountains: +9% RevPAR, sustained by consistent traveler interest

Hawaiian Islands: +6% RevPAR, maintaining strong rate integrity in a competitive climate

In contrast, the Southwest saw the steepest drop, with RevPAR falling -4% YoY and new supply hindering rate growth.

The report suggests that even the strongest markets aren’t immune to emerging pressures.

Forward occupancy for September is down 11% year over year, it finds, and booking windows have shortened across key summer months.

While RevPAR remains strong in several regions, the landscape is becoming more fragmented.

Melanie Brown, VP of Data Insights at Key Data, said: “Performance is no longer just about location or seasonality. We’re seeing the STR sector evolve. Operators who succeed in this next phase won’t be the biggest, they’ll be the most responsive.”

The ability to track booking behavior, adjust pricing dynamically, and execute quickly is now what separates growth from stagnation.”

Related News Stories:  GHA Discovery – TravelMole    





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Tornos News | BCD Travel Survey: What Business Travelers Look for in Hotels

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BCD Travel surveyed 1,035 business travelers worldwide, capturing their accommodation preferences, booking and payment habits, and the challenges they face during their business trips.

Accommodations: Comfort, Location, and Employer Policies

Most business travelers choose mid-range (3*) or upper-class (4*) hotels, with location being the most important factor (77%). Employer policies (56%) and cost (53%) also play an important role. Occasional apartment dwellers prefer apartments for longer trips, as they offer more space and the ability to prepare meals and laundry.

Search, book, and pay

75% use their company’s online booking tool (OBT) to search for hotels, while 33% turn to hotel websites or apps. For booking, 84% again choose OBT, 20% directly through the hotel, and only 10% by phone. Three out of four pay with a corporate credit card, while virtual cards are rarely used.

75% of travelers say that their company sets a price cap for hotels, 10% say there are no limits, and 18% do not know.

Habits and preferences

Personal experience strongly influences choice: 77% prefer hotel chains with consistent service standards, while 73% stay in the same hotel on repeat visits to the same destination.

The most frequently used amenities are Wi-Fi and breakfast. Restaurants, parking, fitness centers, and flexible check-in/check-out are also popular. Travelers also value wellness amenities, such as bottled water, pools, spas, and healthy dining options.

Earning loyalty points is a strong motivator, especially in North America, where 99% are members of relevant programs. Overall, 80% participate in at least one program and 2/3 choose hotels that partner with them. 75% say they save points from business stays.

Problems and security

70% say they are satisfied with their company’s hotel policy and preferred suppliers. However, complaints are recorded about slow Wi-Fi, not including breakfast in the price, outdated rooms, and uncomfortable beds.

Security remains a concern: 30% said they did not feel safe due to the location, while 70% double-lock their room door.

Sustainability: Low Priority

50% rarely or never consider environmental factors when booking. 40% don’t consider sustainability at all, while only 20% look for features like eco-certification, reduced plastic, low carbon, water efficiency or limited cleaning.

BCD Travel says sustainability should be built into the hotel selection process and goals should be clearly communicated to travelers.

Strategy for the Future

As Teri Miller, BCD’s Executive Vice President, notes, a successful hotel program is “dynamic” and adapts to the needs of the market and travelers. With the hotel contract negotiation period underway, the company is providing tools and advice to better leverage programs and improve deals for 2026.





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European hotels join class action against Booking Holdings: Travel Weekly


More than 10,000 hotels across Europe have joined a class action against Booking.com, and organizers have extended the deadline to join the lawsuit to Aug. 29. 

The lawsuit’s participation deadline was initially set for July 31.

The complaint is being organized by HOTREC, a Brussels-based hospitality association that represents hotels, restaurants and cafes across 36 European countries, and 30-plus national hotel associations.

The class action stems from a September 2024 European Court of Justice ruling on a case between Booking.com and more than 60 German hotels and hospitality groups.

HOTREC says that the court found that Booking.com’s parity clauses violated EU competition law, preventing hotels from offering lower prices or better availability via their own websites or other OTAs. 

“Hotels across Europe are entitled to claim compensation from Booking.com for the financial losses suffered,” said HOTREC in a statement, adding that “affected hotels may be eligible to recover a significant portion of commissions paid to Booking.com” between 2004 to 2024, plus interest.  

“Now is the time to stand together and seek redress,” said HOTREC president Alexandros Vassilikos. “This collective action sends a strong message: abusive practices in the digital marketplace will not go unchallenged.”

Booking Holdings, the parent company of Booking.com, disputes the claims, with a spokesperson for the company calling statements made by HOTREC and other hotel associations “incorrect and misleading.” 

“The ECJ ruling that HOTREC and other hotel associations have been referencing to validate a potential class action did not conclude that Booking.com’s price parity clauses were anticompetitive,” said the Booking Holdings spokesperson. “The ECJ was not even asked to assess whether our clauses had anticompetitive effects or any impact on competition. The court simply stated that such clauses fall within the scope of EU competition law and that their effects must be assessed on a case-by-case basis.”

The spokesperson added that the company has “not received any formal notification of a class action.”

HOTREC said the case is being coordinated through the Dutch-based Hotel Claims Alliance Foundation and will be heard in Netherlands courts.



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Spain’s Fergus Group pivots to repositionings

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INTERNATIONAL REPORT — Born out of Palma de
Mallorca, Spain, a decade ago, the Fergus Group’s 34 hotel assets stretch
across key Spanish holiday regions, including the Balearic and Canary Islands,
Catalonia, and Andalusia.

The Spanish company owned by Mallorcan
entrepreneur Pep Cañellas specializes in repositioning, managing, and
commercializing hotel assets across various brands from luxury to mid-market.
It owns and operates hotels under the Fergus Hotels and tent Hotels, while its
soft brand is Affiliated by Fergus.

Already, in 2025, the group has added seven
new properties to its portfolio, with three in Mallorca and one in Sitges on
the Barcelona coast. About a dozen more hotel transformation projects are in
the pipeline for 2025 and 2026, said CEO Bernat Vicens, particularly in the
Canary Islands and in new opportunities areas such as the Valencian Community,
with a special interest in Benidorm.

“Our growth strategy is strongly rooted in the
repositioning of underperforming assets in Spain’s mature vacation
destinations,” Vicens said. “That said, our priority when assessing new
opportunities is clear: we only move forward with projects that allow us to
create long-term value—for the hotel and the destination. We are selective in
our growth.”

The group’s local knowledge gives it the edge
on U.S. companies looking to expand in Spain in the holiday resort market, Vicens
added.

“Managing beach-oriented leisure hotels,
particularly in a mature destination like Spain, requires a very specific
expertise,” he said. “While the core principles of hotel management remain
common, vacation hotel management differs from urban or business hotels. Guest
behavior, expectations, seasonality and spending patterns demand a tailored
approach.

“Many large U.S.-based or publicly traded
companies rely on strong brand architecture but often lack the operational
experience and commercial strategies needed to succeed in this niche. Our
strength lies there.”

Vicens added that the Fergus Group model is
flexible and adapts to the ownership structure of each asset, noting that some
of the hotels are owned.

“We collaborate with a diverse range of
owners, from small family-run businesses to international investment funds and
other hospitality groups, who all share the objective of maximizing asset value,”
Vicens said.

The lineup

The Fergus Hotels brand includes 4- and 5-star
properties across Spain’s top coastal destinations. The brand operates three
distinct sub-segments: Fergus Club, aimed at all-inclusive, activity-rich,
family-oriented travel; the lifestyle-oriented Fergus Hotels; and the premium,
adult-oriented Fergus Style.

Sea View Suite at the Fergus Style Palmanova, Spain

In 2020, the company launched tent Hotels,
targeting the mid-range to premium market segment, and Gen Y and Z travelers,
with a modern and flexible approach.

“Tent Hotels is a trailblazer in the B&UB
(Bed & Unlimited Brunch) category,” Vicens said. “These properties are
tailored for travelers seeking flexibility and immersion in the local
destination.”

Affiliated by Fergus targets independent
hotels that wish to retain their identity while benefiting from Fergus Group’s
operational and commercial expertise.

Vicens said that as a third-party management
company, its strategy is to add value to both the holding company and its
partners. “We choose hotels that are not at the level of performance that they
could be and, through a change in management and reinvestment, take them to
another category.

“Our GOP delivery strategy is rooted in a
combined formula of efficiency and a consumer value-driven model. We focus on
unlocking underutilized potential in assets through targeted repositioning,
lean operational structures and a tailor-made, asset-by-asset commercial
strategy.”

This, too, Vicens believes, differentiates the
group from larger U.S.-based operators who may standardize performance.

“We adapt our approach to each
property—maximizing owner returns by blending operational flexibility with a
deep understanding of local requirements, seasonality, and labor dynamics.”

Bottom line

Vicens said the company’s success can be
measured by the international companies that have chosen them as a management
partner, such as Grupo Piñero and Grupo de Empresas Matutes (owner of the
Palladium Hotel Group).

To date, the group has invested over €130
million in hotel repositioning projects, “always with a focus on unlocking
long-term value.”

We expect to close 2025 with a turnover of €210 million and a GOP of €90 million, an 88% growth compared to recent years.

Bernat Vinces

Vicens said the group’s profits are soaring
along with its expanding portfolio and staff.

“We expect to close 2025 with a turnover of
€210 million and a GOP of €90 million, an 88% growth compared to recent years,”
he said.

This year, Fergus is opening seven new hotels,
including the Fergus Style Punta Arabí in Ibiza, its entry into Menorca with
two hotels, two new assets in Catalonia, and the ninth opening for its tent
Hotels brand. In 2026, three more hotels in Cala Major, Palma’s coastline, will
be renovated before reopening under the Fergus, Fergus Style, and tent Hotels
brands in 2027.

Vicens said the Spanish market continues to
demonstrate strong fundamentals in both domestic and international travel.

“We expect continued growth in ADR and RevPAR
in the leisure segment, especially in coastal and island destinations,” he said.
“With increased interest in quality, authenticity, and year-round experiences,
repositioned assets are in a strong position to outperform the market.”

Even with the uncertainty of global
macroeconomic factors, Vicens feels the outlook is positive, particularly for
operators who can adapt quickly and deliver tailored guest experiences.

“Each year, we add value to the sector by
introducing new repositioning projects that actively contribute to the
evolution of tourism in Spain,” he said.

Vicens gives the example of the €20 million
investments last year in launching three hotels in the Calvià area in
southwestern Mallorca: Fergus Club Mallorca Waterpark, tent Calvià Beach, and
tent Mojito Suites.

Closer
to home, overlooking the Bay of Palma, the group is expanding its footprint
with three new properties set to open in the seaside resort of Cala Major in
2027. Following an extensive repositioning project, the Fergus Style La Cala,
Fergus Marivent, and tent Costa Palma will re-emerge with upgraded facilities
and services.



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