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. Soft top-line growth and elevated inflation will put sustained pressure on hotel profits and margins. Operating profits declined 2.7% as costs outpaced total revenue growth in June. While top line growth outpaced RevPAR growth in June, rising 1.2%, cost increases pressured margins which contracted 0.1 p.p on a TTM basis resulting in declining profits.