- U.S. hotel industry experiences a soft start in June with fluctuating weekday and weekend performances, while global RevPAR continues to grow, albeit at a slower pace.
- Japan sees significant growth due to EXPO 2025, contrasting with mixed results in other key markets like China and France.
U.S. Hotel Industry Overview The U.S. hotel sector had a sluggish start to June 2025, with overall soft performance and notable declines during weekdays across all chain scales. The week concluded with a flat weekend, failing to offset the earlier losses. This trend was mirrored by a significant drop in TSA screenings, suggesting a broader slowdown in travel despite a positive booking pace, indicating short-term improvements. Luxury hotels showed resilience with stronger weekend performances, particularly outside the Top 25 Markets.
Weekday and Weekend Dynamics The performance across the Top 25 Markets was particularly volatile, with significant swings between weekdays and weekends. Cities like San Francisco, Atlanta, and New Orleans experienced positive weekday RevPAR but suffered during the weekend, with notable losses in central business districts. Conversely, cities like Las Vegas and Denver enjoyed robust weekend recoveries after weak weekdays, highlighting the unpredictable nature of current market dynamics.
Global Perspective on Hotel Performance Globally, the hotel industry’s revenue per available room (RevPAR) growth slowed but remained positive, driven primarily by average daily rate (ADR) increases. Japan stood out with a nearly 40% increase in RevPAR, boosted by EXPO 2025. Other countries like India and Spain also reported positive trends.
In contrast, Indonesia and China faced challenges; the former was still reeling from a natural disaster, and the latter was experiencing declines in both demand and ADR.
Looking Ahead The upcoming weeks are crucial for gauging the summer travel season’s direction, with U.S. occupancy rates showing promising signs despite economic uncertainties influencing travel decisions.
The start of the FIFA Club World Cup is expected to impact booking trends in the U.S. host markets. On a global scale, the summer might see slower activity due to fewer major events and economic factors, such as the falling U.S. dollar, potentially affecting international travel.
