What's Happening?
The U.S. hotel industry experienced a decline in revenue per available room (RevPAR) during the week ending September 27, 2025, primarily due to the calendar shift of Rosh Hashanah. This shift led to a 6.6% drop in RevPAR, exacerbated by a 2.8 percentage point decrease in occupancy and a 2.5% fall in average daily rates (ADR). The observance of Rosh Hashanah, which began on a Monday, significantly impacted hotel performance, with notable declines in RevPAR on Monday and Tuesday. Despite the absence of an economic recession, the impact was comparable to the Great Recession of 2008, with a 10.7% decline during the three-day observance period.
Why It's Important?
The decline in hotel performance highlights the sensitivity of the industry to calendar shifts and cultural observances. The impact on RevPAR, particularly in major markets, underscores the challenges faced by the hospitality sector in maintaining consistent performance amidst fluctuating demand. This situation also reflects the broader economic implications of cultural events on business operations, emphasizing the need for strategic planning and adaptability. The industry's recovery will depend on various factors, including economic conditions and travel demand, with October expected to perform better due to the absence of major calendar shifts.
What's Next?
Looking ahead, the hotel industry anticipates improved performance in October, as it is free from significant calendar disruptions and conducive to group and business travel. However, the recovery will hinge on broader economic conditions and the resurgence of travel demand. Industry stakeholders will need to monitor these factors closely and adapt their strategies to navigate potential challenges and capitalize on opportunities for growth.
