What's Happening?
The U.S. hotel industry experienced a significant decline in revenue per available room (RevPAR) for the week ending September 27, 2025, primarily due to the calendar shift of Rosh Hashanah. This decline was marked by a 6.6% drop in RevPAR, driven by a 2.8 percentage point decrease in occupancy and a 2.5% reduction in average daily rates (ADR). The observance of Rosh Hashanah, which began on a Monday, contributed to the largest RevPAR decreases on Monday and Tuesday, with the weekend showing slight improvements in ADR. The Top 25 Markets in the U.S. were most affected, with a notable slowdown in business and group travel during the observance period.
Why It's Important?
The decline in RevPAR highlights the vulnerability of the U.S. hotel industry to calendar shifts and holiday observances. This trend is significant as it reflects broader challenges in the hospitality sector, which has been struggling with occupancy declines for 14 consecutive weeks. The impact of Rosh Hashanah, despite not coinciding with an economic recession, underscores the importance of strategic planning and adaptability in the industry. The decline in group demand, particularly in luxury and upper upscale hotels, suggests potential revenue losses for businesses reliant on corporate and group travel.
What's Next?
Looking ahead, 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.
