Baltimore Hotel Market 2025+ Outlook

This total offer prior to the abolition of several market hotels. However, as indicated above, the submarket is dominated by hotels at higher prices. The Hotels segment at higher prices has seen its growth trail revPar the average categories and at lower prices in 2023; However, the most recent period of the start of the year, it achieved the fastest growth rate of RevPar. Throughout the 3rd quarter of 2024, the RevPar of Hotels at higher prices increased by 13.2% over the same period in 2023. The submarket surpasses the wider market, as evidenced by the penetration of the revpar at 126% of the largest Baltimore market (during the year 2024).

Occupation and average daily rate (ADR)

According to the CBRE Hotel Horizons, the third quarter of 2024, for the four training quarters ending in the third quarter of 2024, the Baltimore hotel market reached an average occupancy rate of 65.8%. This level of occupation represents a modest but regular recovery of the impacts of the pandemic, indicating stabilization of demand in leisure and business segments. The preliminary figures for the end of 2024 did not suggest any additional occupation. Thus, while the occupation remains below pre-pale summits, it marks a healthy rebound and opened the ground for more in-depth growth in 2025.

The average daily rate (ADR) for Baltimore hotels during this period amounted to $ 132.29. This represents a notable increase of 3.9% compared to the previous period of four quarters, ending the third quarter of 2023. Improvement of the ADR reflects the growing confidence of consumers, the stronger demand and the tightening of the Hotel offer, which allowed operators to order higher prices for rooms. Looking in 2025, several high-end owners / hotel managers provide increases from 5% to 10% in ADR as by-product of the limited offer.

Income by available room (RevPar)

Consequently direct of the increase in occupation and the ADR, revenues per available room (RevPar) experienced a significant increase of 6.7%, reaching a solid $ 87.05 in the third quarter of 2024. Growth Du RevPar highlights the positive economic conditions in the Baltimore hotel sector and demonstrates that the hotels have managed to take advantage of the higher rates while maintaining healthy occupation levels. The wait for 2025 is therefore a modest increase in the occupation coupled with solid growth in the rate. The combination of these factors could lead to an increase in the two -digit revpar for the year.

The impact of the elimination of hotel rooms on supply and demand

An important factor influencing the performance of the hotel market in Baltimore was the abolition of around 2,500 hotel rooms in the city center supply. This reduction in the inventory of parts has created a constrained supply environment, which turned out to be advantageous for hotels operating in the region. Among the hotels that have closed or repositioned as alternative uses (such as homeless shelters or multifamilial apartments) are the Holiday Inn Downtown, the Sheraton Inner Harbor, the Radisson and the Holiday Inn Inner Harbor. The following table lists closed hotels.

Reduction of supply and rate growth

The elimination of these rooms has contributed to reducing competition on the downtown hotel market. With fewer rooms available, hotels in the region have acquired the capacity to increase their rates without fear of a significant leakage of demand to competing properties. Consequently, the market has increased upwards on the ADR, which was reflected in the increased increase of 3.9% of the average rate. The reduced supply, combined with increased demand from tourists and business travelers, positioned the Baltimore hotel sector to make stronger yields on investments. There are 280 rooms under construction in the two projects in the city center. These better rated hotels include the Hilton Garden Inn Downtown and an independent store property in the old Breger Gutman department store. Thus, while the overall food has decreased by more than 20% between 2020 and 2024, the new power supply marks only a replacement of 3.3% of the lost inventory. We do not provide for new additional constructions given the increase in borrowing costs resulting from the increase in differences in US treasury bills in the last month. Therefore, we expect the new offer to be absorbed by the market and existing hotels should see health improvements in the next two years.

Occupancy levels and balance of supply

Although the occupation levels have increased pandemic hollows, they have not yet completely recovered at pre-pale levels. However, the decrease in the number of hotel rooms available has contributed to maintaining higher occupation levels by tightening competition. The elimination of more than 2,500 rooms has actually redistributed demand in a smaller pool of available rooms, allowing the remaining hotels to fill their properties at a higher occupancy rate.

In addition, with the continuous evolution of the landscape of the workforce, including an increase in corporate trips and an increase in meetings and events within the framework of the post-pandemic recovery, the reduced associated offer To high demand is ready to push higher occupation levels, especially in the coming years.

Prospects for the Baltimore hotel market in 2025

Request engines for 2025

While we are impatiently awaiting in 2025, several factors should contribute to the continuous growth of the hotel market in Baltimore:

1. Commercial and business trips: With companies adopting hybrid and flexible work models, the emphasis is renewed on meetings, conventions and corporate events in person. The proximity of Baltimore to large metropolitan areas such as Washington, DC and its pretty downtown sites makes it a privileged location for such events. This could lead to an increase in corporate trips and a higher occupation for hotels.
2. Tourism recovery: Baltimore has experienced a resurgence of tourism while travelers are impatient to explore cultural attractions, historic sites and destinations by the water. While travel restrictions continue to facilitate ease, the city’s tourism sector should experience significant growth, benefiting hotels with increased leisure trips.
3. Major conventions and events: Baltimore’s strategic position as a hub for conferences and conventions also positions its hotels to benefit from the influx of workshop lights. With the recent expansion of events of events and increased emphasis on the creation of attractive destination experiences, the request for a hotel linked to conventions and large -scale events should grow.

   According to Visit Baltimore, there are 87 events on the calendar for 2025 ranging from 275 to 75,000 people. These events should generate 71,329 room nights in the city center of Baltimore. The data show that for the 5 participants, there is about a night at night generated. In addition, these events will fill 23% of the rooms available on the city center during the coming year.

4. Long -term food constraints: The abolition of 2,500 hotel rooms will likely continue to put pressure on the offer and support occupancy levels with existing properties. While demand increased in 2025, hoteliers on the market should find themselves better placed to further push the rates of the rooms while maintaining a solid occupation.

Strategic opportunities for hotel operators

As the market progressed in 2025, Baltimore hotel operators will have several opportunities to capitalize on the evolution of the landscape:

• Rate optimization: With the reduced supply and increasing demand, hotels should continue to focus on rate optimization strategies, using dynamic price models to maximize the GDR during advanced demand periods, such as conventions , the summer tourism season and vacation weekends.
• Improved guest experience: Given the competitive nature of the market, offering exceptional guest experience will be crucial to maintain high levels of occupation. Hotels can invest in upgrades and services that appeal to leisure travelers and businesses, improving the overall value proposal.
• Sustainability and well-being trends: While sustainability becomes an increasingly important factor for travelers, Baltimore hotels can take advantage of environmentally friendly practices and well-being equipment as key differentiaries. The capitalization of the growing demand for environmentally friendly travel options can attract a growing basis of conscious travelers.

Conclusion

The Baltimore Hotel market has shown strong resilience and strong growth in the four dragging quarters ending in the third quarter of 2024, with a significant increase in ADR and RevPar. The elimination of around 2,500 hotel rooms from the city center supply played an essential role in creating a more favorable balance in demand for supply, which allowed operators to push the rate and maintain solid occupancy levels. In 2025, the prospects for the Baltimore hotel market remain positive, supported by solid engines of the demand for business trips, tourism and events. The reduced supply, combined with a continuous recovery of demand, provides hotels with significant possibilities to capitalize more on rate increases and occupation growth, positioning the city’s hotel sector for continuous success in the years to come.