- U.S. revenue per available room (RevPAR) saw a 4.1% rise in the week ending on 3 May 2025, driven by higher occupancy and average daily rate (ADR).
- San Francisco led the Top 25 Markets with the highest RevPAR growth, with other key markets including Orlando, Miami and Chicago also showing significant gains.
Global RevPAR Strength
Globally, RevPAR growth returned, advancing 9.7%. Japan led this growth, with RevPAR rising by nearly 40%, largely thanks to the Golden Week holiday. Other countries with strong performance included India and Mexico, while France and Germany posted gains partly influenced by the calendar shift.
U.S. RevPAR Performance Overview
The U.S. hotel industry experienced a 4.1% growth in RevPAR for the week ending 3 May 2025, with a strong start due to an easy year-over-year comparison to Passover. The Top 25 Markets significantly drove this growth, with RevPAR increasing by 16.3% during the first three days of the week. However, the performance over the weekend was slower, particularly in Las Vegas, causing an overall decline of 2.1%.
Top 25 Market RevPAR Leaders
Among the Top 25 Markets, San Francisco emerged as the clear leader in RevPAR growth, primarily due to hosting the RSA Summit. Other markets with notable RevPAR growth included Orlando, Miami, Chicago, Anaheim (Orange County), and Minneapolis. Meanwhile, Las Vegas, New Orleans, and Nashville experienced significant RevPAR decreases, largely due to sharp decreases over the weekend.
Group and Transient Demand
The week saw a rebound in group demand in Luxury and Upper Upscale hotels, rising by 10.7%, which was boosted by the Passover calendar shift. Similarly, transient demand also increased by 1.4%. Among the Top 25 Markets, San Francisco, St. Louis, Seattle, Orlando, and Minneapolis led in group demand gains.
Chain Scale Performance
Luxury and Upper Upscale chains continued to advance RevPAR the most, followed by smaller gains in Upscale and Upper Midscale. Economy chains saw a decrease due to declines in both ADR and occupancy.
Outlook
Preliminary U.S. RevPAR for April is expected to be flat. However, a clean calendar and more stable comparisons are expected next week. Current data indicates a strong performance for the rest of May and June, with some softness predicted in July.
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