Hotels Adapt to 2025 Trends: Wellness, Multigenerational Travel, and Cultural Immersion

NEW YORK, N.Y. — As 2025 unfolds, the hospitality industry is undergoing a transformation to meet the evolving demands of travelers. Hotels are investing heavily in renovations and new amenities to cater to multigenerational families, tech-savvy wellness enthusiasts, and cultural explorers. Industry leaders predict a surge in group travel, urban market investments, and high-tech wellness offerings as key drivers of growth this year.

Greg Perry, vice president of hospitality investments at RREAF Holdings, told Hotel Dive that the cooling interest rate environment and improving lender sentiment have created a favorable climate for hotel investment. “If there’s a story for 2025, [it’s that] increasing group demand will be a key driver of our business [this] year,” Perry said. Urban markets like New York City, Chicago, and Nashville are expected to see strong investor demand, while secondary suburban markets are also gaining traction.

Zach Demuth, global head of JLL Hotels Research, noted that mid-sized deals valued between $50 million and $150 million will dominate the market. “Our anticipation for [this] year is that we’ll actually start reverting more to the mean, and that we’ll see more of these middle transactions,” Demuth said. “While they might not be as sexy as these $500 million deals, that’s what the industry really needs.”

Group travel is expected to lead the way in 2025, driven by corporate meetings, entertainment events, and sports tourism. Jessica Carey, vice president of customer operations at Cendyn, highlighted the growing popularity of sports tourism, which surged in 2024 and is expected to continue flourishing. “Sports travel is surging,” said Frank Passanante, senior vice president and global head of sales at Hilton, noting that 80% of Hilton’s sports sales revenue comes from youth and amateur sports.

Hotels are also adapting to the rise of multigenerational travel, with 37% of travelers reporting they often vacation with their parents. Alicia Zur-Szpiro, co-founder of Wanderland London, emphasized the financial potential of this trend. “A multigenerational trip will necessarily entail a booking of multiple rooms, for multiple nights, with a strong uptake of F&B offerings and other services the hotel may offer,” Zur-Szpiro said. “This is a hugely spend-heavy type of guest profile.”

Wellness tourism is another major focus for 2025, with the global wellness market projected to grow significantly. Meghan Patke, founder of Modern Currency, highlighted the integration of technology into wellness offerings. “The future of hotel wellness is one where technology supports deeper relaxation, recovery, and rejuvenation while enhancing the overall luxury experience,” Patke said. High-tech treatments like IV drip therapy and biomarker testing are becoming increasingly popular at luxury hotels.

Cultural immersion is also a priority for travelers, particularly younger generations. Mike Metcalf, a hospitality expert, noted that travelers are seeking authentic local experiences. “Wherever [travelers] go, they’re going there to experience whatever that local area has to offer,” Metcalf said. Hotels are responding by incorporating local culture into their dining options, decor, and curated experiences.

Renovations are set to dominate the hotel construction pipeline in 2025, with an estimated 300,000 to 400,000 hotel rooms undergoing updates. Bruce Ford, senior vice president at Lodging Econometrics, explained that many hotels built between 2004 and 2009 are due for their first major renovation. “Sales transactions nine times out of 10 lead to a renovation,” Ford said, noting that automation and energy-efficient upgrades will be key focuses.

As the hospitality industry adapts to these trends, hotels are positioning themselves to capture a diverse range of travelers in 2025 and beyond.