U.S. hotel demand and revenue per available room (RevPAR) increased for the week ending 21 June 2025, marking a recovery from a three-week decline, with notable impacts from the Juneteenth holiday and school calendar shifts.
U.S. Hotel Industry Sees Positive Turnaround
The U.S. hotel industry experienced a positive shift for the week ending 21 June 2025, breaking a three-week trend of declining demand and revenue per available room (RevPAR). This improvement aligns with the official start of summer, as travel activity picked up significantly. According to data, the Transportation Security Administration (TSA) screenings also showed year-over-year growth after a similar three-week decline.
A key factor contributing to this turnaround is the later end date for many U.S. school districts, as indicated by STR’s School Break Report. This trend was particularly evident in the northern regions of the country, where summer breaks commence later, thereby influencing hotel performance trends.
Impact of Juneteenth Holiday
The Juneteenth holiday, which moved from a Wednesday last year to a Thursday this year, played a significant role in shaping day-of-week trends. This shift resulted in easier comparisons early in the week and a stronger weekend, as many workers likely opted for a four-day weekend. Consequently, RevPAR for the week increased by 3.3%, driven by a 2% rise in the average daily rate (ADR) and a 0.9 percentage point increase in occupancy. This marked the first weekly occupancy increase since early May.
The Top 25 Markets (T25) experienced strong RevPAR gains from Sunday through Tuesday, followed by a midweek slowdown and a weekend pickup. Markets outside the T25 and other large city markets saw a boost starting Thursday that extended through the weekend.
Performance in Key U.S. Markets
Two major markets, Houston and Las Vegas, continued to impact U.S. performance averages. Las Vegas saw a significant RevPAR decline of 17.4%, influenced by a notable drop in international arrivals during the spring months. Houston’s RevPAR dropped 3.4% due to a difficult comparison from 2024, when the market’s performance was elevated by displacement demand caused by storms.
Excluding these two markets, U.S. RevPAR increased by 4.2%, with ADR up 2.3% and occupancy up 1.3 percentage points. The performance declines observed in the U.S. over the previous two weeks were less pronounced when these markets were excluded.
Luxury Segment Leads Growth
RevPAR growth remained bifurcated, with the luxury segment advancing by 9.6%, primarily due to a 7.0% increase in ADR, while occupancy rose by 1.7 percentage points. Upper Upscale and Upscale segments followed with RevPAR increases of 4.3% and 3.9%, respectively. The Upper Midscale and Midscale segments hovered around 2%, while the Economy segment saw a slight decline.
In the Top 25 Markets, the bifurcation was even more pronounced, with RevPAR ranging from a 10.9% increase in luxury hotels to a 5.2% decline in economy hotels.
Global RevPAR Trends
Globally, RevPAR experienced a modest slowdown, retreating for the first time in four weeks. The decline was primarily driven by a 1.4 percentage point drop in occupancy, while ADR remained relatively flat. Despite the overall global RevPAR decline, most major countries posted positive performance due to ADR increases.
Japan continued to lead with a RevPAR increase of 31.2%, with all markets showing gains. Canada followed with an 8.1% increase in RevPAR, as 17 of 22 markets posted gains. Italy and Indonesia also saw positive RevPAR growth, influenced by calendar shifts and public holidays.
Conversely, Germany faced a challenging comparison to last year, when it hosted Euro 2024. China, the U.K., and France also experienced declines, with specific events and calendar shifts impacting performance in these regions.
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