Overview of U.S. Hotel Performance
In the final full week of June 2025, U.S. hotels experienced a mixed performance, characterized by strong weekend activity but offset by sluggish weekday performance. The overall revenue per available room (RevPAR) remained virtually unchanged at -0.1%, with no significant movement in the average daily rate (ADR) or occupancy rates. This stagnation underscores the ongoing challenges in the hotel industry as it adapts to shifting travel behaviors.
Day-of-Week Performance Variations
The week saw a distinct pattern in day-of-week performance. Weekend RevPAR, encompassing Friday and Saturday, showed a positive trend with a 3.2% increase. In contrast, weekdays, specifically Monday through Wednesday, experienced a 2.2% decline. Shoulder days, which typically see moderate business travel, also saw a slight decrease of 0.8%. The absence of pre-pandemic levels of business travel continues to cause fluctuations in daily and weekly demand.
Chain Scale Performance
The performance across different hotel chain scales showed varying results. Luxury hotels recorded the highest RevPAR gain at 1.7%, while the Economy segment faced the steepest decline at 1.8%. All chain scales followed the day-of-week performance pattern, with weekends showing the most positive results, except for the Economy segment. Weekdays saw a decline in RevPAR across all chain scales, and only Luxury hotels managed to avoid a drop during the shoulder period.
Top 25 Markets vs. Other U.S. Markets
The Top 25 Markets (T25) underperformed compared to the rest of the U.S., with a 2.8% decline in RevPAR. This was driven by significant drops during weekdays (-4.8%) and shoulder days (-4.0%), though the weekend saw a modest increase of 1.3%. Only nine of these markets posted positive RevPAR. In contrast, other large city markets experienced a 1.9% increase in RevPAR, driven by a strong weekend performance (+6.0%) and positive shoulder days (+1.7%). Non-metro and rural areas also saw a 2.1% rise in RevPAR, with Louisiana North, Wisconsin South and North, and Missouri North leading the gains.
Impact of Calendar Shifts on Group Demand
Group demand in Luxury and Upper Upscale hotels remained flat at 0.1%, with a weekend increase of 5.2% offset by a 1.7% decline during the rest of the week. The shift in the calendar for holidays such as Juneteenth and July 4th, which fell on Thursday and Friday this year compared to Wednesday and Thursday last year, appears to have influenced these patterns. This shift had a positive impact on weekend demand, while negatively affecting weekday demand. Non-T25 markets saw a 4.2% rise in group demand, while T25 markets experienced a 3.1% decline.
Global Hotel Industry Trends
Globally, the hotel industry mirrored the U.S. patterns with a flat RevPAR at 0.2%. While ADR saw a 1.0% increase, occupancy declined by 0.6 percentage points. The global day-of-week pattern was similar, with a 3.0% increase in weekend RevPAR and declines of 1.0% and 0.9% during weekdays and shoulder periods, respectively. Despite the overall flat performance, nine of the 11 major countries reported positive results, with Japan leading, followed by Indonesia, Spain, and India.
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