What's Happening?
The latest STR report highlights trends in the U.S. hotel market for the week of September 28 to October 4, 2025. Despite a general decline in revenue per available room (RevPAR) across the U.S., Las Vegas and Chicago showed significant growth due to major conventions. Las Vegas experienced a 49% increase in RevPAR, driven by the Pack EXPO event, while Chicago saw a 23.1% rise due to the WEFTEC 2025 convention. Overall, U.S. RevPAR was down 0.4%, marking the smallest decline in five weeks, with occupancy continuing to fall for the 15th consecutive week. Average daily rate (ADR) increased by 2.7%, the highest rate in 23 weeks, largely due to strong performance in the Top 25 Markets.
Why It's Important?
The report underscores the impact of large conventions on hotel performance, particularly in major markets like Las Vegas and Chicago. These events can significantly boost local economies and hotel revenues, highlighting the importance of group demand in the hospitality industry. However, the overall decline in U.S. RevPAR and occupancy suggests ongoing challenges in the sector, potentially affecting hotel profitability and investment decisions. The data also reflects broader economic trends, such as inflation and consumer spending patterns, which influence travel and accommodation choices.
What's Next?
Looking ahead, the report suggests that October may see improved performance compared to September, partly due to a favorable calendar and the timing of Halloween. The continued focus on group demand and major events will likely play a crucial role in shaping hotel market trends. Stakeholders in the hospitality industry may need to adapt strategies to address ongoing occupancy challenges and leverage opportunities presented by large-scale conventions.
Beyond the Headlines
The report highlights the nuanced impact of external factors such as hurricanes and religious observances on hotel demand. For instance, difficult comparisons with the previous year's hurricane season affected markets like Tampa, while Yom Kippur influenced demand in the Top 25 Markets. These factors illustrate the complex interplay between environmental, cultural, and economic elements in shaping hospitality industry dynamics.
