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Solid group demand in advance of spring conference season – Image Credit STR
- The U.S. hotel industry’s revenue per available room (RevPAR) remains inconsistent, influenced by various factors including calendar shifts and natural disasters.
- Worldwide hotel occupancy increased, driven by significant gains in China following New Year celebrations.
The U.S. hotel industry’s revenue per available room (RevPAR) continues to fluctuate, with a near-flat result for the week ending February 22, 2025. Factors influencing the performance include calendar shifts, recovery from wildfires and hurricanes, and the Super Bowl.
Markets affected by hurricanes in 2024 saw a 5.1% rise in RevPAR, though growth rates are declining. Los Angeles submarkets are still seeing elevated demand due to the wildfires, while Las Vegas suffered a negative RevPAR change due to a shift in conference schedules.
In terms of group demands, Luxury and Upper Upscale hotels experienced a 0.8% decrease, while Average Daily Rate (ADR) increased by 4%. The Top 25 Markets showed solid group demand, up by 2.3%, with ADR up 3.9%, led by cities such as Philadelphia, Los Angeles, Boston, and Nashville.
Global occupancy, excluding the U.S., reached 67.4%, driven by gains in China following New Year celebrations. RevPAR rose in eight out of the ten largest countries, ranging from a 24.2% increase in Mexico to a 3.5% increase in the U.K. China’s RevPAR boost was entirely due to occupancy gains.
Looking ahead, U.S. forward bookings for the week ending March 1 are above last year’s level, and March performance is expected to be stronger due to the shift of Easter and Passover to April. The U.K. and Europe are also expected to benefit from the Easter/Passover shift, while travel in the Middle East is expected to slow due to the month-long observance of Ramadan.
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