FIFA World Cup Hospitality: Mexico, U.S., and Canada Hotel Industry Poised for Steady 2% Growth in 2025, Driven by Urban Market Strength, Rising Travel Demand, and Global Events CBRE Forecasts Sustained Growth in Hotel Revenue for 2025, Led by Urban Markets and Strong Travel Recovery.
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The hospitality industry across Mexico, the United States, and Canada is set to experience steady expansion in 2025, with revenue per available room (RevPAR) projected to increase by 2.0%, according to CBRE. This growth will be primarily driven by the dominance of urban markets, fueled by rising business and group travel, as well as a continued surge in international inbound tourism.
CBRE’s forecast highlights a 23-basis-point (bps) rise in occupancy rates, coupled with a 1.6% increase in average daily rates (ADR), reinforcing the sector’s resilience. This upward trajectory indicates that the lodging industry is well on track to exceed pre-pandemic performance, with RevPAR expected to surpass 2019 levels by an impressive 16.6%.
Football World Cup Hospitality: Economic Factors and Global Events Drive Hospitality Growth in 2025 and Beyond
Economic indicators play a pivotal role in shaping the hospitality industry’s outlook for 2025. CBRE’s base forecast includes a 2.4% GDP growth rate and an average inflation rate of 2.5%, both of which are crucial for the sector’s expansion. Given the strong historical correlation between GDP growth and RevPAR performance, the overall strength of the economy will be a key driver of sustained growth in the hotel industry.
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The demand for accommodations is expected to remain robust in the coming years, supported by several high-profile international events. The 2026 FIFA World Cup, hosted across the U.S., Mexico, and Canada, is set to be a significant driver of hotel bookings. Additionally, the 2028 Summer Olympics in Los Angeles and the United States’ 250th anniversary celebrations in 2026 will further boost demand.
Beyond these events, the enduring appeal of national parks, major global gateway cities, and top U.S. leisure destinations will contribute to consistent RevPAR growth. If economic conditions remain stable, CBRE projects RevPAR growth to range between 1.5% and 3.5% annually, reinforcing the long-term resilience of the hospitality sector.
FIFA World Cup Hospitality: Long-Term Travel Demand Strengthened by Major Global Events
The expansion of new hotel supply is expected to remain constrained in the coming years due to high financing and construction costs. Growth is projected to stay below 1% annually over the next three years, limiting the number of new properties entering the market. Additionally, external factors such as tariffs, labor shortages, and potential Federal Reserve interest rate adjustments could further slow hotel development.
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This restricted supply pipeline is likely to enhance pricing power for existing hotels. Allowing them to increase room rates as demand remains strong. Furthermore, rising replacement costs for hospitality assets could make existing properties even more valuable. Reinforcing the financial strength of well-established hotels.
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CBRE’s forecast underscores a promising period ahead for the hospitality sector, particularly in urban markets. With sustained travel demand, economic stability, and major global events on the horizon. The lodging industry is well-position for steady growth, shaping a strong future for hospitality.
World Cup 2026 to Boost Hospitality Industry Growth Across North America
The FIFA World Cup 2026, is set to be hosted across the United States, Mexico, and Canada. Expect to be a major catalyst for the hospitality industry. With millions of fans traveling across 16 host cities, the event will drive unprecedented demand for hotels. Short-term rentals, and other lodging options. The influx of international visitors will significantly boost revenue per available room (RevPAR), particularly in urban markets.
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One key factor influencing the hospitality outlook is limited hotel supply growth. Due to rising construction costs, financing challenges, and labor shortages. New hotel developments is expect to remain below 1% annually over the next three years. This means that existing hotels will have stronger pricing power. Allowing them to increase average daily rates (ADR) during peak event periods. The World Cup’s massive demand will further drive room prices. Especially in high-traffic cities like New York, Los Angeles, and Toronto.
The outlook for 2025 reflects strong demand in metropolitan areas. Where corporate events, conventions, and major international occasions are set to drive bookings. As global travel regains momentum, the hospitality sector is expected to maintain positive growth. Solidifying its post-pandemic recovery and ensuring long-term stability.
Hotel Pricing Power and Limited Supply Growth And Economic and Long-Term Travel Impacts
CBRE’s forecast anticipates a 2.4% GDP growth rate and 2.5% average inflation in 2025. Which historically correlates with strong hospitality performance. Additionally, the World Cup will leave a lasting impact on travel patterns, encouraging future visits to host cities. Alongside other major events like the 2028 Summer Olympics in Los Angeles, and the United States’ 250th anniversary in 2026. And continued demand for global gateway cities, the hospitality sector is set for steady growth.
With limited hotel supply, increased pricing power, and strong economic indicators. The 2026 FIFA World Cup will be a game-changer for North America’s lodging industry. Urban markets will benefit the most, shaping a new era of hospitality demand and investment opportunities.
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