U.S. hotel revenue per available room (RevPAR) fell 2.7% for the week ending 10 May 2025, following two weeks of growth. Despite the U.S. decline, the global RevPAR continued to grow, advancing 7.8%.
U.S. Hotel Revenue Takes a Hit
In the week ending May 10, 2025, U.S. RevPAR declined 2.7%, primarily due to a drop in occupancy rates. This dip in performance was most significant during the weekend, with RevPAR down by 4.0%. The Top 25 markets, which had previously shown strong gains, also suffered notable losses, with RevPAR decreasing by 4.3%.
Performances in Major U.S. Markets
Among the Top 25 markets, San Francisco experienced the largest decline, largely due to the shifting calendar of the RSA conference. Other major markets that suffered declines include Las Vegas and Dallas. In contrast, Philadelphia, Boston, Nashville, and Tampa saw significant gains.
Next 25 Largest Markets and Luxury Chains
The next 25 largest markets held steady with a relatively flat RevPAR. Luxury chain hotels continued to perform well, while other chain scales declined due to falling occupancy rates. Despite the overall industry decline, luxury chains managed to maintain positive RevPAR during weekdays and flat performance during weekends.
Group Business Remains Steady
Despite the overall decrease in RevPAR, group business in Luxury and Upper Upscale hotels remained almost flat, even seeing a 6.2% lift in weekend group demand. The week’s decrease in absolute room demand was mostly due to a decline in Transient demand.
Global RevPAR Continues its Growth
Contrasting with the U.S. market, global RevPAR grew, advancing 7.8%. Four of the top 10 largest countries, including Japan and Mexico, saw double-digit RevPAR growth. While Canada, Germany, and India also posted gains, France and China’s RevPAR experienced declines.
Looking Ahead
The recent slowdown in the U.S. market was unexpected and could potentially be a result of increased economic uncertainty due to policy changes. Despite this, forward booking data for the Top 25 U.S. markets remains positive for the rest of May and June. Globally, the industry continues to stay strong with U.S. outbound travel on the rise.
