Article at a Glance:
What specific economic and industrial evidence indicates that the hospitality design sector is positioned for major growth in 2025?
The answers are rooted in a sharp post-pandemic resurgence, highlighted by a notable influx of client requests for qualifications and proposals (RFQs/RFPs) alongside bullish global forecasts like JLL’s predicted 15% to 25% increase in global hotel investment volume compared to last year. Additionally, CoStar data reveals that U.S. hotel rooms under construction have reached a multi-month high of nearly 158,000 rooms, signaling a major boom in development and renovations tailored to tech-savvy and multigenerational travelers. Backed by positive RevPAR (revenue per available room) gains heavily favoring major metropolitan markets, this macroeconomic shift has successfully revitalized long-delayed pre-pandemic flagship developments—such as the massive Gaylord Pacific Resort and the Signia by Hilton at the Georgia World Congress Center—creating a highly profitable, sustainable business climate for specialized technology consultants and design professionals nationwide.
Happy days are here again for hospitality design professionals. That is, NTI is expecting a good year based on the evidence we see as 2025 gets underway. Evidence in this case includes increased business activity that we are witnessing with client requests for qualifications and proposals. It also includes articles that we have read about the 2025 business climate and more than a few industry forecasts.
At NTI, we have worked on hotels and other hospitality projects for over 25 years. Since the pandemic, the industry has returned to a healthy state, helping fuel NTI’s company growth again. That was true for our most recent year, 2024. We decided to share why our view of 2025 will likely be, in a word, rosy.
In the first month of 2025, NTI has witnessed increased RFQ/RFP activity from clients for projects that have at least one hotel in scope. The increase is measured against our average monthly activity in 2024 for hotel oriented projects. NTI posted growth in 2024 over the previous year so this represents a continuation of our company’s growth as we begin the year. While one month is certainly not a trend, we are encouraged by the activity in the new year’s first month. We are also encouraged by positive projections from various sources. Examples include:
Hotel News Resource reports that “According to the 2025 Global Hotel Investment Outlook released by JLL’s Hotels & Hospitality Group, the global hotel investment volume is predicted to rise by 15% to 25% compared to 2024. This projection underscores the industry’s resilience and growth potential in adapting to changing travel patterns and consumer preferences.”
CALIBER published that, “The U.S. hospitality sector has recovered from the pandemic in recent years. Since COVID-19 safety measures were lifted, hotels have generated impressive growth rates as travel has roared back worldwide.”
Caliber’s article also offered, “In June 2024, the volume of U.S. hotel rooms under construction reached its highest level in 16 months, according to CoStar data, with 157,713 rooms under construction. That represented a 5.5% increase from a year earlier.”
HOTEL DIVE predicts, “ Hotels will cater to multigenerational families, large groups, tech-savvy wellness travelers and cultural explorers as hotel investment and renovations ramp up.”
Hotel Management predicts success may be based on geography. “For hoteliers located in the major U.S. markets, the outlook for growth is somewhat rosier compared to their counterparts in the more remote and rural areas of the country. According to the August 2024 edition of Hotel Horizons, the 65 major U.S. markets tracked by CBRE are forecast to achieve a revenue per available room gain of 3.3 percent in 2025. The 25 largest markets are forecast to experience a slightly greater RevPAR increase of 3.5 percent. Both growth rates are more than the 2.3 percent gain projected for all U.S. hotels during the year.”
The years between the great recession and the pandemic were all good years for NTI, as they likely were for most design teams who serve the hospitality industry. The pandemic stopped those good years abruptly as the hotel industry outlook became anemic. Not all projects that were already underway before the pandemic remained viable during the months of Covid. Those that did remain active often experienced delays in the design and/or construction schedule. Many others went on hold, and they did not come back overnight. NTI is still working on projects that were awarded to us prior to the pandemic. And we still has a few projects that are on hold which are now expected to return to active status this year.
A few high profile projects on which NTI worked that kicked off before the pandemic and opened after it include:
Ritz Carlton & Residences NoMad – New York, NY
NTI started design in June of 2015. It opened in July 2022.
TSX Broadway in Times Square – New York, NY
NTI started design in February 2016. It opened in September 2023.
Marriott HQ Hotel – Bethesda, MD
NTI started design in June of 2017. It opened in September 2022.
Gaylord Pacific – Chula Vista, CA
NTI started design in October 2018. It is scheduled to open in late spring 2025.
Signia by Hilton at the Georgia World Congress Center – Atlanta. GA
NTI started design in November of 2018. It opened in January 2024.
After more than 25 years in business, we know that business projections are seldom exactly on target. That said, the available information provides ample evidence of a growth year for the hospitality industry. Only time will tell if the year will be as rosy as we would (all) like it to be, however, those of us who work in the hospitality sector should be poised for a good year in 2025.
About the Author
John Davis
John is NTI’s Design Business Development Director. He leads NTI business development including new business pursuit, client retention efforts and publishing the quarterly newsletter. John joined the NTI team in 2008 after 25 years in the software and technology services industry.