The U.S. hotel industry continues to experience declines in RevPAR, while global markets show a mixed performance, with notable growth in Italy, Japan, France, and India.
U.S. RevPAR Continues Downward Trend
The U.S. hotel industry’s revenue per available room (RevPAR) declined by 0.7% for the week ending September 6, 2025, marking the 19th weekly drop this year and the 12th in the past 16 weeks. Falling occupancy rates primarily drive this decline, although a slight decrease in the average daily rate (ADR) of 0.2% also contributed to the decline.
The Top 25 Markets (T25) experienced a more significant decline of 1.5% in RevPAR, while other markets remained nearly flat. Houston and Las Vegas were major contributors to the T25’s weak performance, with Houston facing tough comparisons to last year’s weather-related demand and Las Vegas affected by reduced international travel and a sluggish economic environment.
Labor Day and College Football Impact
Despite the overall downturn, the inclusion of Labor Day in the week provided a slight boost to weekday RevPAR, which increased by 0.1% due to gains in San Francisco and San Diego. Labor Day itself saw a 1.1% rise in RevPAR. However, shoulder days and weekends experienced declines, with Sunday being a particularly weak day. The return of college football brought significant weekend growth in some markets, including Oklahoma City, Wisconsin North, and Missouri North, although double-digit decreases in other areas offset this.
Hotel Class Performance
Among hotel classes, Luxury hotels saw a 4% increase in weekday RevPAR, while Economy class hotels experienced a comparable decrease. Over the weekend, only Luxury hotels reported growth, with all other classes, particularly Economy, seeing declines. Economy hotels in the T25 markets were notably affected, with RevPAR falling by 9.3% compared to a 3.7% decrease in other markets.
Global RevPAR Trends
Globally, same-store RevPAR, excluding the U.S., increased by 3.7%, a slower growth rate than the previous week. Italy, France, Japan, and India recorded double-digit growth, while China and Indonesia faced declines. In Canada, RevPAR increased by 3.6%, down from an 8.7% rise the previous week, with occupancy rates declining but still exhibiting seasonal trends. Similarly, Mexico’s RevPAR growth slowed to 3.7%, with flat occupancy rates.
Outlook for the Coming Weeks
Looking ahead, the next two weeks are expected to be positive for RevPAR growth as they are “clean calendar” weeks, free from major holidays. However, the week ending 27 September will be affected by Rosh Hashana, which is likely to slow conference and business travel. Additionally, the U.S. southeast will face challenging comparisons due to last year’s Hurricane Helene, and Hurricane Milton’s impact will be felt in October.
Overall, while the U.S. hotel industry continues to struggle with ongoing RevPAR declines, global markets present a mixed picture, with some regions experiencing robust growth. The coming weeks offer potential for improvement, but external factors, such as holidays and past weather events, could impact performance.
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