Us Hotel Performance Struggles As Revpar Dips For Nineteenth Week In A Row: Everything You Need To Know

Published on September 13, 2025

As we footwear disconnected September, U.S. hotels are still facing a reliable stretch, pinch capacity numbers continuing to slide. The latest stat shows that nan gross per disposable room aliases RevPAR, fell by 0.7 percent during nan week of August 31 to September 6. What’s worrying is that this is nan nineteenth week successful a statement RevPAR has decreased successful 2023, and 12 of those weeks person posted a diminution of much than zero. This dependable driblet hints astatine a wider slowing crossed nan full sector, particularly arsenic occupancy rates support edging down successful nan country’s biggest markets.

Weakening Hotel Demand successful nan US

The superior driver down this continued downturn has been falling occupancy, which has compounded nan dip successful mean regular complaint (ADR), starring to little RevPAR crossed galore markets. While location person been mini fluctuations, wide RevPAR trends stay downbeat. The apical 25 US edifice markets knowledgeable a 1.5 percent diminution successful RevPAR, compared to a adjacent level capacity successful nan remaining markets, which saw a flimsy alteration of conscionable 0.1 percent. Notably, these apical 25 markets person consistently outperformed nan broader sector, but this is nary longer nan case, arsenic request weakens successful cardinal cities for illustration Houston and Las Vegas.

Houston and Las Vegas Face Declining Performance

In nan astir caller week, Houston and Las Vegas were among nan largest contributors to nan downturn successful nan apical 25 US edifice markets, pinch these cities accounting for 1.1 percent points of nan alteration successful RevPAR. Houston’s capacity was peculiarly affected by nan precocious comps from past year’s summertime storms and flooding, while Las Vegas has seen a important driblet successful world visitors, compounded by a lacklustre economical environment.

Regional Market Differences successful Hotel Performance

Across nan United States, 16 of nan apical 25 markets saw RevPAR decline, a inclination that has been accordant for nan past 10 weeks. Among these, Houston saw nan astir important alteration astatine 18.7 percent, mostly driven by a crisp autumn successful occupancy. On nan different hand, San Francisco bucked nan inclination pinch a notable 24.7 percent summation successful RevPAR, driven by astir adjacent gains successful occupancy and ADR.

Outside nan apical 25, however, immoderate regions person fared better. For example, Oklahoma City reported an awesome 72.5% summation successful RevPAR during nan week of August 31 to September 6, acknowledgment to nan influx of visitors attending assemblage shot games. Similar trends were seen successful different markets, specified arsenic Missouri North and Wisconsin North, which besides reported double-digit increases.

Hotel Class Performance: Luxury Leads nan Way

In position of edifice people performance, luxury hotels proceed to outshine their counterparts. For nan week successful question, luxury hotels posted a 4% summation successful RevPAR connected weekdays, nan strongest capacity crossed each classes. Upper upscale hotels besides saw a flimsy uptick successful RevPAR, while system people hotels struggled significantly, pinch a 5.6% alteration successful RevPAR. This is successful statement pinch nan wide inclination seen successful erstwhile weeks, wherever system hotels, particularly those successful nan apical 25 US edifice markets, person been underperforming.

Economy hotels successful these awesome markets saw a 9.3 percent driblet successful RevPAR, compared to a 3.7 percent alteration successful hotels located extracurricular nan apical 25 markets. This stark opposition highlights nan greater challenges faced by lower-end hotels successful nan astir competitory municipality areas.

Impact of Major Events connected Hotel Markets

Despite nan wide diminution successful RevPAR, definite events person provided a much-needed boost for edifice markets. The return of assemblage shot has importantly impacted play performance, pinch respective markets reporting important gains. Oklahoma City, for example, saw a 72.5 percent summation successful RevPAR, driven by nan ample crowds attending shot games.

Similarly, markets successful Wisconsin and Missouri experienced gains of 47.3 percent and 43.2 percent, respectively, arsenic football-related recreation surged. However, nan unpredictable quality of sports schedules intends that these gains will apt beryllium short-lived, pinch fluctuations expected depending connected nan timing and fame of events.

Challenges and Opportunities Ahead for US Hotels

Looking ahead, manufacture experts judge that nan coming weeks whitethorn bring immoderate alleviation to nan US edifice sector, arsenic nan almanac clears. The weeks ending September 13 and September 20 are expected to beryllium affirmative for edifice performance, arsenic they are clean calendar weeks without immoderate awesome nationalist holidays aliases belief observances that could negatively effect business and convention travel.

However, nan week ending September 27 will apt spot a dip successful capacity owed to nan observance of Rosh Hashana, which typically leads to a slowdown successful convention and business travel. The pursuing month, October, will besides bring difficult comparisons to nan erstwhile year, arsenic past twelvemonth saw nan effect of Hurricane Helene successful nan southeast, which disrupted edifice capacity successful galore markets.

Global Trends successful Hotel Performance

While US hotels proceed to struggle, nan world edifice marketplace has seen much optimistic growth. Excluding nan US, world RevPAR accrued by 3.7 percent during nan aforesaid week, pinch Italy, France, Japan, and India each experiencing double-digit growth. However, countries for illustration China and Indonesia saw declines, reflecting nan location variability successful edifice performance.

In Canada, RevPAR maturation slowed to 3.6 percent during nan week, down from 8.7 percent5 nan erstwhile week. Despite this slowdown, respective markets successful Canada, including Toronto, showed signs of seasonal growth, pinch occupancy rates improving.

US Hotels Face Continued Struggles successful 2025

As nan twelvemonth progresses, nan US edifice manufacture faces continued challenges, pinch a prolonged diminution successful RevPAR affecting galore markets. While definite regions and events, for illustration assemblage football, supply impermanent relief, nan wide outlook remains uncertain. Industry analysts expect nan adjacent fewer weeks to show immoderate improvement, but nan sector’s betterment is apt to beryllium slow and uneven, pinch title expanding successful cardinal municipality areas.

Despite nan struggles, opportunities stay for definite edifice segments, peculiarly luxury properties, which proceed to spot stronger performance. As hotels navigate these challenging times, they will request to accommodate to shifting request and research caller strategies to pull guests successful an progressively competitory landscape.