Internationally, Japan maintained its position as the top RevPAR performer, with a 23.8% increase.
Impact of the Fourth of July Holiday
The week of June 29 to July 5, 2025, saw notable shifts in the U.S. hotel industry’s performance, largely influenced by the timing of the Fourth of July holiday. With the holiday falling on a Friday this year, business travelers took advantage of the extended weekend, resulting in strong year-over-year gains in key metrics from Sunday through Tuesday. Revenue per available room (RevPAR) increased by 6.6%, driven by a 2.6 percentage point rise in occupancy and a 1.8% increase in the average daily rate (ADR).
However, the latter part of the week presented challenges, with RevPAR dropping significantly on Wednesday and Thursday by 5.8% and 15.0%, respectively. Friday saw a slight uptick, while Saturday experienced a 2.7% decline. Overall, the week’s RevPAR declined by 1.3%, with a 0.9% decrease in ADR and a 0.2 percentage point drop in occupancy.
Las Vegas’ Influence on National Averages
Las Vegas continued to exert a significant influence on national hotel metrics. The city experienced a substantial decline in RevPAR, down 28.7%, due to a 14.3% decrease in ADR and a 13.4 percentage point drop in occupancy. Given Las Vegas’ contribution to 3% of the U.S. hotel room supply, its performance notably impacts national averages. The city’s challenges were compounded by softening economic conditions and a decline in international arrivals, which fell by 13.2% in June. Excluding Las Vegas, the U.S. RevPAR remained relatively flat, with a slight decrease in ADR and a marginal increase in occupancy.
Performance Across Different Markets
The performance across various market segments was generally flat. In the Top 25 (T25) Markets, excluding Las Vegas, RevPAR decreased by 0.2%. Non-T25 metro markets saw a slight increase of 0.4%, while non-metro/rural markets experienced a 0.2% decline. Despite the overall flat performance, certain markets stood out. St. Louis led the T25 markets with a 38.4% increase in RevPAR, buoyed by events such as the 62nd General Conference Session of the Seventh-day Adventist Church.
Dallas, San Diego, and Washington also reported double-digit RevPAR growth, primarily at the week’s start. In non-T25 metro areas, Birmingham and Milwaukee posted strong results, hosting major events like the 2025 World Police and Fire Games and the 2025 USA Fencing Summer Nationals, respectively. In non-metro/rural markets, Louisiana North, including Shreveport, recorded consistent gains throughout the week.
Chain Scale and Group Demand Dynamics
The chain scale performance was mixed, with luxury hotels experiencing their first weekly RevPAR decline in 16 weeks, albeit a modest 0.4%. The next three chain scales saw slight increases driven by occupancy, while the remaining scales faced declines due to falling ADR and occupancy. The week began positively for all chain scales, with the most significant gains in the top four scales, but all retreated by the week’s end.
Group demand, typically slow during the Independence Day week, saw a notable increase, with room demand rising by 11.5% among luxury and upper-upscale hotels. The gains were concentrated from Sunday to Wednesday, with a 31.1% increase, while Thursday to Saturday saw an 8.3% decline. In contrast, transient demand dropped by 2.5%, with a slight decrease from Sunday to Wednesday and a more significant drop from Thursday to Saturday.
International Market Highlights
Internationally, Japan maintained its position as the top RevPAR performer, with a 23.8% increase. The U.K. also saw growth, with an 8.0% rise in RevPAR, marking its first increase since early May. Significant events, such as concerts by Oasis in Cardiff and Black Sabbath in Birmingham drove this growth.
Conversely, countries like China, Germany, and France experienced declines in RevPAR. Germany faced a challenging comparison to the previous year’s EURO 2024, while France and China saw broad-based decreases across most markets, except for strong performances in Hong Kong and Paris.
Looking Ahead
The U.S. hotel industry’s outlook remains uncertain, with room demand showing signs of stagnation. TSA passenger screenings increased by 1.2% over the past week, while international travel to the U.S. in June was down by 6.6%. Meanwhile, the value of the U.S. dollar has declined by more than 10% compared to last July, potentially encouraging domestic travel while attracting international visitors.
Concerts and events continue to significantly impact market performance, as evidenced by recent trends. With summer not yet at its midpoint, stadium concerts are expected to further boost hotel performance in select markets globally. However, these impacts are likely to be more isolated as the season progresses.
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