Hotel technology platform Cloudbeds released its 2026 State of Independent Hotels Report, which identified a widening gap in performance across the segment.
Now in its fourth year, the report—which delivered a detailed quantitative snapshot of 2025—drew on data from 90 million bookings across thousands of properties in 180 countries. The report further revealed that independent hotels lost ground to online travel agencies in several key metrics during 2025, even as certain regions and shifting traveler behaviors identified areas of opportunity for operators able to adapt.
“2025 told many different stories for independent hotels, and that divergence is only the beginning,” Adam Harris, CEO of San Diego-based Cloudbeds, said in a statement. “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 report shows that demand softened across independent hotels, with global occupancy declining 0.6 percent year over year. Average daily rate fell 5.8 percent and RevPAR declined 5.4 percent, marking a notable contrast to branded hotel performance over the same period.
Performance varied significantly by region. Europe, the Middle East and Africa emerged as the strongest-performing region, with ADR increasing 6.0 percent and RevPAR rising 3.9 percent. Asia Pacific, meanwhile, recorded the steepest declines, as ADR dropped 16.2 percent and RevPAR fell 17.5 percent. North America experienced more modest decreases overall, though Canada stood out with RevPAR growth of 6.0 percent, while the U.S. saw a 4.4 percent decline.
The data also indicates that reliance on OTAs continues to grow. OTA share of bookings reached 63.4 percent globally, with some markets approaching 80 percent. Cancellation rates for OTA bookings climbed to 21.8 percent, more than double the 10.6 percent rate recorded for direct bookings.