What's Happening?
The U.S. hotel industry is experiencing a decline in revenue per available room (RevPAR), with a 1.7% drop in the week ending September 13, 2025. This marks the largest decrease in the past eight weeks, primarily driven by a fall in occupancy rates. The Top 25 Markets saw a more pronounced decline of 3.5%, with significant drops in cities like Houston and Las Vegas. Despite this, global markets outside the U.S. reported a 6.8% increase in same-store RevPAR, indicating a recovery in international hotel performance.
Why It's Important?
The decline in U.S. hotel RevPAR highlights ongoing challenges in the domestic hospitality sector, potentially affecting profitability and investment in the industry. The contrasting global recovery suggests a shift in travel patterns, with international destinations gaining popularity. This could impact U.S. tourism and related businesses, as well as influence strategic decisions by hotel operators regarding pricing and marketing strategies.
What's Next?
The outlook for September remains cautious, with potential impacts from events like Rosh Hashanah affecting travel demand. The industry may need to adapt to changing consumer preferences and economic conditions to stabilize RevPAR. Monitoring occupancy trends and adjusting strategies to attract more group bookings could be crucial for recovery.
