- U.S. hotel RevPAR grows due to spring break and major events, with significant gains in markets outside the Top 25.
- Global Average Daily Rates (ADR) maintain a growth streak, contributing to RevPAR increases.
For the week ending 22 March 2025, the U.S. hotel industry experienced a boost in Revenue per Available Room (RevPAR) thanks to spring break and major events. The RevPAR rose by 2.8%, primarily due to a 1.8% Average Daily Rates (ADR) increase. The growth was particularly strong from Sunday to Thursday, with a 5.6% rise in RevPAR, attributed to ADR growth.
Markets outside the Top 25 saw a slightly higher RevPAR growth rate than those within the Top 25. However, all markets experienced a weekend RevPAR decline, with the Top 25 markets reporting the largest decrease. Two markets, Chicago and Anaheim (Orange County), saw RevPAR growth soar by over 20% due to key conferences.
Luxury hotels, particularly those outside the Top 25 markets, recorded the highest RevPAR gain, lifted primarily by ADR. However, group demand in Luxury and Upper Upscale hotels decreased for the third consecutive week, while transient demand increased.
ADR continued its remarkable growth streak on a global scale, with year-over-year ADR gains in 58 of the past 60 weeks. This led to a 6.3% increase in RevPAR. Most countries experienced RevPAR gains almost entirely due to ADR.
Hurricane-affected markets from 2024 continue to see elevated performance, with RevPAR for the week up 9.1%. Similarly, markets impacted by California’s January wildfires posted strong RevPAR gains.
In the upcoming weeks, U.S. hotel results are expected to remain strong due to the continuation of spring break holidays until Easter 2025, though at a slower pace. Globally, the Easter calendar shift is also expected to impact performance in Europe and Central/South America.
