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Globally, excluding the U.S., RevPAR increased by 7.4%, with Japan, Mexico, Indonesia, and India posting substantial gains. – Image Credit Unsplash
- U.S. hotel revenue per available room (RevPAR) fell by 13.2% year over year in the week ending 11 January 2025 due to post-holiday slowdown and calendar shifts.
- Despite the drop in the U.S. and Europe, hotel performance remained robust in Japan, Mexico, Indonesia, and India.
The U.S. hotel industry witnessed a significant dip in revenue per available room (RevPAR), with a 13.2% year-over-year decline in the week ending 11 January 2025. This decrease was attributed to the post-holiday slowdown and the shift of the MLK holiday weekend. The largest drop was observed in the Top 25 Markets, particularly in San Francisco, due to the rescheduling of the J.P. Morgan Healthcare Conference.
Group demand was also affected nationwide, with most of the Top 25 Markets recording occupancy declines. However, Atlanta, Philadelphia, and Seattle emerged as bright spots, registering double-digit group occupancy gains.
Transient occupancy dropped 2.5% nationwide, with the Economy chain scale being the only one to post positive RevPAR comparisons. This was largely due to markets affected by Hurricanes Helene and Milton.
Meanwhile, the wildfires in Los Angeles had a limited impact on hotel performance, with a surge in demand noticed during the weekdays but a decline over the weekend.
Globally, excluding the U.S., RevPAR increased by 7.4%, with Japan, Mexico, Indonesia, and India posting substantial gains. Countries across Europe and Canada, like the U.S., experienced a slowdown due to the post-holiday lull.
Despite the recent slump, next week’s data is expected to significantly improve the U.S. hotel industry. Factors contributing to this anticipated boost include the MLK weekend, the J.P. Morgan Healthcare Conference, the U.S. Presidential Inauguration, and the resumption of convention and business travel after the holidays. However, the impact of the Los Angeles fires on the region’s hotel industry will continue to be monitored.
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