Cloudbeds, the intelligent unified platform powering hotel growth, released the 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 identifies seven structural shifts affecting independent operators.
The central finding is one of accelerating divergence. Independent hotels lost ground relative to OTAs in 2025, with global occupancy slipping 0.6% year over year, while ADR and RevPAR declined 5.8% and 5.4% respectively. This contrasts sharply with branded hotel performance over the same period. However, regional bright spots emerged, with EMEA seeing ADR rise 6.0% and RevPAR advance 3.9%. Asia Pacific recorded the steepest declines, with ADR falling 16.2% and RevPAR dropping 17.5%. North America posted modest declines overall, though Canada outperformed with RevPAR growth of 6.0%, while the U.S. declined 4.4%.
OTA dependence deepened, with OTA share of independent hotel bookings rising to 63.4%, and 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 2025, up from 38 days in 2023, with North America and EMEA leading at 48 and 47 days, respectively. Cancellation lead times also 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 7 nights surged 25% year over year, signaling emerging extended-stay demand. The report includes regional performance breakdowns, country spotlights, booking behavior analysis, and expanded trend analysis with actionable recommendations for independent operators.
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.”
The full report is available for download at https://www.cloudbeds.com/hospitality-industry-report/.
