U.S. Hotel Industry Rebounds with Global RevPAR on the Rise during the week ending 18 January 2025 :: Hospitality Trends

• U.S. hotel revenue per available room (RevPAR) increased 17.2% year-over-year for the week ending 18 January 2025, with major markets, particularly San Francisco and Washington D.C., showing strong growth. 
• Globally, RevPAR increased by 8.1%, with Japan leading the way. 

After a post-holiday lull, the U.S. hotel industry has seen a notable rebound, with significant increases in revenue per available room (RevPAR). This growth is attributed to the Martin Luther King holiday weekend, the return of conferences and events, and the Presidential Inauguration weekend. Major markets have seen a RevPAR rise of 26.6%, with San Francisco leading due to the timing of the J.P. Morgan Healthcare Conference.

The demand for hotels in areas affected by Hurricanes Helene and Milton remains high, with a 13.9% RevPAR increase. All chain scales have been boosted, with luxury chains seeing the highest increase in RevPAR (+37.7%).

The Los Angeles area, affected by wildfires, has seen an increase in demand (+7.5%), although tourist areas have seen a decrease.

Globally, excluding the U.S., the weekly RevPAR increased by 8.1%, led by Japan with a 34.7% gain. Mexico and Germany also posted strong performance increases, while China’s performance remained flat.

Despite the positive trends, a slowdown is expected in the following week due to the Martin Luther King holiday. The Presidential Inauguration is expected to boost the market in Washington D.C., while the wildfires in Los Angeles will continue to impact the market in that area. Japan, Mexico, and Indonesia are expected to see continued ADR-driven RevPAR due to their weak currencies.

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