What's Happening?
The U.S. hospitality industry experienced a notable decline in revenue per available room (RevPAR) during the week ending November 15, 2025, primarily due to Veterans Day falling on a Tuesday. This midweek
holiday led to a 4.6% drop in RevPAR, driven by a decrease in occupancy rates and average daily rates. The Top 25 Markets saw a sharper decline of 6.2% in RevPAR, with group demand retreating significantly. The holiday-induced disruptions were most pronounced on Veterans Day itself, with RevPAR falling 12.5% overall and 15.2% in the Top 25 Markets. The impact continued through Wednesday and Thursday, with a 7.5% decline in RevPAR. Historical comparisons show that midweek Veterans Day occurrences often result in decreased RevPAR, similar to recession-like conditions.
Why It's Important?
The decline in RevPAR during the Veterans Day week highlights the sensitivity of the hospitality industry to holiday scheduling and its impact on travel patterns. The drop in group demand, particularly in major markets, underscores the reliance on business travel and conferences for revenue generation. This trend could have broader implications for hotel operators and investors, as it may affect profitability and strategic planning. The industry must adapt to such fluctuations, potentially by diversifying revenue streams or adjusting pricing strategies. The decrease also reflects broader economic conditions, as similar patterns were observed during past recessions, indicating potential vulnerabilities in the sector.
What's Next?
Looking ahead, the U.S. hospitality industry may face further challenges as the week before Thanksgiving historically sees a drop in room demand. TSA screenings have already fallen, suggesting a potential decrease in air travel and subsequent hotel bookings. This pattern, combined with the seasonal nature of travel, could lead to another decline in RevPAR. Hotel operators may need to prepare for these fluctuations by enhancing marketing efforts or offering promotions to attract travelers. Additionally, global RevPAR is expected to continue its growth, providing some optimism for international markets.
Beyond the Headlines
The midweek occurrence of Veterans Day and its impact on hotel revenue raises questions about the broader economic implications of holiday scheduling. The reliance on group demand and business travel highlights the need for the hospitality industry to innovate and adapt to changing consumer behaviors. This situation also presents an opportunity for hotels to explore alternative revenue sources, such as leisure travel or local events, to mitigate the effects of such disruptions. Furthermore, the comparison to recession-like conditions suggests that the industry must remain vigilant and responsive to economic indicators.
