GDP growth remains below the long-term avg, and inflation remains sticky. CBRE raised its 2025 GDP forecast to 1.6% from 1.3%. Due to the higher expected base in 2025, CBRE lowered its 2026 GDP growth estimate to 1.8% from 2.0%. Both 2025 and 2026 are expected to be below the 2.1% long run average. CPI is also expected to remain elevated through at least 2026. Soft top-line growth and elevated inflation will put sustained pressure on hotel profits and margins.
