For the week ending October 26th U.S. Hotel Industry Experiences Significant Growth, Boosted by Major Events and Hurricane Recovery Efforts :: Hospitality Trends

• U.S. hotel revenue per available room (RevPAR) increased 9.3% year over year, with the South region notably benefiting from recovery efforts after recent hurricanes. 
• College football games, Taylor Swift’s tour, and various conferences significantly contributed to the demand surge, with over 27.2 million rooms sold during the week.

The U.S. hotel sector enjoyed significant gains, with RevPAR growing by 9.3% year over year, primarily due to equal improvements in occupancy and average daily rate (ADR). This surge was driven by varying factors, such as hurricane recovery efforts in the South, Taylor Swift’s ‘Eras Tour’, college football games, and numerous conferences.

The South region, in particular, was a significant contributor to the increase in demand, accounting for nearly half of the week’s demand surge. Areas affected by Hurricanes Helene and Milton, including Augusta, Sarasota, and Tampa, saw demand and RevPAR growth exceeding 20%.

The Northeast region led the country in RevPAR growth, followed by the Midwest and the South. Tertiary markets in the Northeast, such as Rhode Island and the Massachusetts Area, experienced the highest RevPAR gains.

Taylor Swift’s tour significantly boosted New Orleans’ ADR, which grew by 64.1% during the week, the highest of any market. College football also had a notable impact on the industry, with Tuscaloosa seeing the highest weekend RevPAR increase due to the Missouri/Alabama game.

Group demand increased at luxury and Upper-Upscale hotels, reaching its highest level of the year so far. This led to strong RevPAR growth across five of the seven chain scales.

Internationally, excluding the U.S., global RevPAR advanced by 10.2%, primarily due to ADR gains. France and Japan, in particular, saw strong RevPAR growth. However, while China led in room demand growth, its RevPAR fell by 2.5% due to a 3.6% drop in ADR.

The report concludes with a prediction of favorable RevPAR comparisons in November, although at a slower rate than October. Globally, hotel performance is expected to slow in the coming week but accelerate in the following one.