Rosh Hashanah Calendar Shift Impacts U.S. Hotel Industry Performance

What's Happening?

The U.S. hotel industry reported a 6.6% decline in revenue per available room (RevPAR) for the week ending September 27, 2025, largely due to the calendar shift of Rosh Hashanah. This decline was exacerbated by a 2.8 percentage point drop in occupancy and a 2.5% decrease in average daily rates (ADR). The observance of Rosh Hashanah, which began on a Monday, led to significant RevPAR decreases on Monday and Tuesday, with a lesser decrease on Wednesday. The Top 25 Markets experienced the most substantial impact, particularly in group hotels, where group demand fell by 19.4% for the week.

Why It's Important?

The decline in RevPAR during the Rosh Hashanah observance highlights the challenges faced by the U.S. hotel industry in maintaining stable occupancy rates. This trend is significant as it reflects broader issues within the hospitality sector, which has seen occupancy declines for 14 consecutive weeks. The impact on group demand, especially in luxury and upper upscale hotels, suggests potential revenue losses for businesses reliant on corporate and group travel. The industry's ability to adapt to calendar shifts and holiday observances is crucial for long-term stability.

What's Next?

The U.S. hotel industry anticipates a better performance in October, as it is free from major calendar shifts and conducive to group and business travel. However, the industry's recovery will depend on various factors, including economic conditions and travel demand. Stakeholders may need to consider innovative strategies to mitigate the impact of future holiday observances and improve occupancy rates.

Beyond the Headlines

The impact of Rosh Hashanah on the U.S. hotel industry raises questions about the long-term resilience of the sector in the face of cultural and religious observances. It highlights the need for hotels to develop flexible pricing and marketing strategies that can accommodate fluctuations in demand. Additionally, the industry's reliance on group travel suggests a need for diversification to ensure stability during periods of decreased business travel.