STR Reports Decline in U.S. Hotel RevPAR Due to Rosh Hashanah Calendar Shift

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 Rosh Hashanah observance. RevPAR fell by 6.6%, driven by a 2.8 percentage point drop in occupancy and a 2.5% decrease in average daily rate (ADR). This marks the 14th consecutive week of declining occupancy, a trend not seen since the end of the pandemic. The largest RevPAR declines occurred on Monday and Tuesday, coinciding with the start of Rosh Hashanah. The Top 25 Markets were particularly affected, with a significant drop in group hotel demand. Despite these declines, some markets like Long Island and New York City saw gains due to events like the Ryder Cup and the U.N. General Assembly.

Why It's Important?

The decline in RevPAR highlights the sensitivity of the hotel industry to calendar shifts and major events. The impact on the Top 25 Markets underscores the importance of group and business travel in sustaining hotel revenues. The ongoing decline in occupancy could signal challenges for the industry if not addressed, potentially affecting employment and investment in the sector. The contrasting performance in markets like Long Island and New York City suggests that strategic event planning can mitigate some negative impacts. The broader implications for the U.S. economy include potential shifts in travel patterns and consumer spending, which could influence future hotel pricing strategies and investment decisions.

What's Next?

Looking ahead, the hotel industry may see improved performance in October, as it is expected to be free of significant calendar shifts. However, the industry must remain vigilant in adapting to changing travel patterns and consumer preferences. The potential for a resurgence in group and business travel could provide a boost, but ongoing economic uncertainties may pose challenges. Industry stakeholders will need to monitor these trends closely and adjust their strategies accordingly to capitalize on any recovery opportunities.