The latest STR Weekly Insights report for the week ending November 1, 2025, highlights a mixed performance in the global hotel industry. While international markets saw significant growth in revenue per available room (RevPAR), the U.S. market experienced a decline, primarily attributed to the impact of Halloween on weekend demand.
U.S. Market Overview
The U.S. hotel market faced a challenging week, with RevPAR falling by 2.3%, primarily due to a decline in weekend occupancy linked to Halloween. The average daily rate (ADR) increased by a modest 0.4%, which did not keep pace with inflation. Occupancy rates declined for the 19th consecutive week, dropping by 1.6 percentage points. The Top 25 Markets experienced a smaller RevPAR decline of 0.7%, compared to a 3.6% drop in other markets. This was partly due to stronger business transient and group demand as Halloween fell at the end of the week.
Weekday vs. Weekend Performance
Weekday RevPAR from Sunday through Thursday showed a 4.0% increase, driven by ADR growth surpassing inflation. This growth was more pronounced in the Top 25 Markets (3.7%) and other markets (4.4%). Wednesday saw the most significant increase, with RevPAR rising by 17.9% due to easier comparisons from the previous year. Excluding Wednesday, weekday RevPAR increased by 0.8%, with the Top 25 Markets remaining flat at 0.2% and other markets rising by 1.6%.
In contrast, weekend RevPAR fell sharply by 13.9% due to Halloween, with Friday experiencing the largest drop of 18.2%. The decline was more severe in the 2024 hurricane-affected markets, which saw a 29.6% decrease, and in Las Vegas, which recorded a 10.2% drop.
Halloween’s Impact on Demand
Halloween’s occurrence on a Friday this year contributed to a decrease in per capita demand, despite a record number of rooms sold. The weekend occupancy was the third highest among the seven times Halloween has fallen on a Friday or Saturday since 2000. However, the per capita demand, calculated against the total working population, was lower than in previous years. This trend was also observed from Sunday through Thursday.
Market Movements
Despite the overall decline, some U.S. markets performed well. Cities such as Boston, Dallas, Chicago, Columbus, and San Francisco experienced double-digit RevPAR gains. New York City maintained the highest weekly occupancy at 89.3% for the tenth consecutive week. Conversely, Washington, D.C. faced a 6.2% drop in weekly RevPAR due to government employment changes and a shutdown. New Orleans experienced the largest RevPAR decline of 38.3%, largely due to difficult comparisons with last year’s events.
Global Market Performance
Globally, RevPAR surged by 11.7%, driven by a 7.7% increase in ADR and a 3.7 percentage point rise in occupancy. India led the growth with an 88% increase in RevPAR, attributed to easy comparisons from Diwali 2024. Germany’s RevPAR rose by 33.3%, bolstered by the CPHI conference in Frankfurt, which saw a 224% increase in RevPAR. France continued its growth, with Paris leading the way, while Canada benefited from the World Series games in Toronto, resulting in an 11.7% increase in RevPAR.
Outlook and Conclusion
The report indicates ongoing challenges in the U.S. hotel industry, with October’s RevPAR expected to decline by more than 1%. This would mark the seventh consecutive monthly decrease, with room demand falling by 1.8 million room nights in October. The outlook for November and December remains challenging, while international markets continue to experience growth driven by business travel and conferences.
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