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Same-store global RevPAR, excluding the U.S, rose 9.9% on ADR as occupancy was flat. Germany, France, Spain and several other countries and regions saw double-digit RevPAR and ADR growth. – Image Credit CoStar
Despite a slight improvement in U.S. hotel performance driven by major conferences in key markets, overall trends remain weak, with global RevPAR showing more robust growth.
U.S. Hotel Performance: An Overview
For the week of September 28 to October 4, 2025, the U.S. hotel industry experienced mixed results. Revenue per available room (RevPAR) in the U.S. continued its downward trend for the fifth consecutive week, albeit with the smallest decline in that period at -0.4%. Occupancy has been falling for 15 consecutive weeks, yet the average daily rate (ADR) grew at its highest rate in 23 weeks, increasing by 2.7%.
Impact of Major Conferences
Large conferences in key markets primarily drove the rise in ADR. Las Vegas and Chicago were significant contributors, with Las Vegas hosting the Pack EXPO, which attracted 30,000 attendees and 20,000 exhibitor personnel. This event led to a 49.5% increase in ADR from Sunday to Tuesday. Similarly, Chicago saw a 23.1% rise in ADR due to the WEFTEC 2025 event and other conventions at McCormick Place. Despite these gains, the overall trend does not indicate a sustained improvement, as excluding these markets would result in a RevPAR decline similar to the previous week.
Regional Disparities and Hurricane Comparisons
Among the Top 25 Markets, Las Vegas and Chicago showed the most significant RevPAR growth, at 49% and 19.1%, respectively. However, other markets like Atlanta, Houston, and Tampa faced double-digit declines. Tampa, in particular, saw a 35% decrease due to comparisons with the previous year’s Hurricane Helene. In total, 17 of the Top 25 Markets experienced flat or declining RevPAR.
Outside the Top 25, markets that benefited from Hurricane Helene last year, such as Columbia and Savannah, saw significant RevPAR decreases. Excluding these markets, U.S. weekly RevPAR was up 0.9% due to rising ADR, but excluding Las Vegas, it was down 0.9% because of declining occupancy.
Yom Kippur and Weekend Performance
The observance of Yom Kippur on Wednesday and Thursday led to noticeable demand changes, with the Top 25 Markets experiencing declines of -3.0% and -4.4%, respectively. However, the impact was offset by last year’s Rosh Hashanah. Meanwhile, several markets saw strong RevPAR growth during weekends, driven by ADR gains, particularly in Michigan South, Alabama North, and Indiana North.
Luxury and Group Business Dynamics
Luxury hotels benefited from strong convention activity, with RevPAR increasing by 8.2% due to a 7.9% ADR growth. Conversely, Economy hotels saw a 6.5% drop in RevPAR due to declining occupancy. While Las Vegas and Chicago experienced strong Group demand, overall U.S. Group demand among Luxury and Upper Upscale hotels declined by 2.9%, despite a 7.1% increase in ADR.
Global RevPAR Trends
Globally, RevPAR excluding the U.S. rose by 9.9%, with Germany, France, and Spain seeing double-digit growth. In contrast, China and the Caribbean faced declines due to events like the Mid-Autumn Festival and Hurricane Imelda. Mexico and Canada showed modest RevPAR increases, with notable growth in Nova Scotia.
Outlook for October
Despite the slight improvement from the previous week, underlying weaknesses in the U.S. hotel industry persist. While strong Group performance in Chicago and Las Vegas is encouraging, it appears to be an outlier rather than a trend change. However, expectations for October are more optimistic, with a relatively clean calendar and Halloween falling on a Friday, potentially boosting performance.
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