On a global scale, excluding the U.S., demand dropped by 3.5% due to the change in the Chinese New Year.
- Valentine’s Day falling on a Friday and the Presidents’ Day weekend led to a spike in hotel industry performance, with a 3.4% increase in Revenue per Available Room (RevPAR) and a 2.2% increase in the Average Daily Rate (ADR).
- Despite the impacts of natural disasters, such as wildfires and hurricanes, the hotel and travel industry demonstrated resilience with solid RevPAR gains and a return to normal trading patterns.
The week ending 15th February 2025 was a strong period for the hotel and travel industry, largely due to Valentine’s Day falling on a Friday and the ensuing long Presidents’ Day weekend. This resulted in a 3.4% increase in RevPAR, with the Average Daily Rate (ADR) improving by 2.2%. Weekdays saw the most significant gains, with RevPAR up by 7.4%.
Despite the impact of natural disasters, such as the California wildfires and hurricanes in the Southeast, the industry showed resilience. The impact of the California wildfires began to recede with a return to normal trading patterns, while the 13 southeastern markets affected by hurricanes Helene and Milton continued to see elevated performance, with RevPAR up by 15.6%.
Group demand across luxury and upper-upscale hotels rose by 14.7% year-over-year, highlighting the importance of the calendar shift from Valentine’s Day. On a global scale, excluding the U.S., demand dropped by 3.5% due to the change in the Chinese New Year.
The week ahead is expected to be relatively flat, with the Presidents’ Day holiday likely to slow business and conference travel. However, the spring holidays, including Easter and Passover, are predicted to benefit conference and group travel. Despite the impacts of disasters and global events, the hotel and travel industry demonstrates resilience and growth.
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