Cloudbeds, the intelligent unified platform powering hotel growth, released its fourth annual 2026 State of Independent Hotels Report, based on 90 million bookings from tens of thousands of properties across 180 countries. The report highlights a central finding of accelerating divergence, with independent hotels losing ground to OTAs in 2025 across key performance metrics. However, it also identifies regional bright spots and behavioral shifts that offer strategic opportunities for operators.
Global occupancy for independent hotels slipped 0.6% year over year, while average daily rate (ADR) and revenue per available room (RevPAR) declined 5.8% and 5.4%, respectively. This contrasts sharply with branded hotel performance over the same period. Regional performance varied significantly. EMEA was a bright spot, with ADR rising 6.0% and RevPAR advancing 3.9%. Asia Pacific recorded steep declines: ADR fell 16.2% and RevPAR dropped 17.5%. North America posted modest overall declines, 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, with travelers booking an average of 40 days in advance in 2025, up from 38 days in 2023. North America and EMEA led at 48 and 47 days, respectively. Cancellation lead times also expanded to 39 days on average, 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. 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."
The full report includes regional performance breakdowns, country spotlights, booking behavior analysis, and expanded trend analysis with actionable recommendations. It is available for download at the Cloudbeds website. Cloudbeds, founded in 2012, has earned top honors from Hotel Tech Report, World Travel Awards, and Deloitte's Technology Fast 500.
