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STR Weekly Insights: U.S. Hotel Industry Sees First RevPAR Growth Since August Amidst Global Gains – Image Credit CoStar
U.S. Hotel Industry Overview
For the week ending 11 October 2025, the U.S. hotel industry witnessed a notable increase in the average daily rate (ADR) and revenue per available room (RevPAR), marking a positive shift in the sector. This period saw ADR grow at the rate of inflation for the second consecutive week, with a 2.6% increase, while RevPAR rose by 0.6%—the first weekly rise since the end of August. Despite these gains, occupancy continued to decline for the 16th straight week, albeit at a slower rate than previous weeks.
ADR and RevPAR Trends
The ADR growth was unexpected, given the modest average increase of 0.2% in the preceding 21 weeks. The rise was widespread, with the Top 25 Markets experiencing a 2.8% increase, despite a downturn in Las Vegas, and the rest of the country seeing a 2.4% rise. The ADR increase was particularly pronounced from Wednesday onwards, with a 4.1% surge in the Top 25 Markets over the weekend. This growth was driven by events such as college football games and the start of the fall break, which boosted demand in smaller markets.
Impact of College Football and Holidays
The weekend saw significant RevPAR gains, with 31 markets recording double-digit increases, the highest since March. Madison led with an 81% ADR gain, primarily due to the Wisconsin-Iowa football game. The weekend was further buoyed by the start of the Columbus Day holiday weekend and the fall break for 16% of K-12 students, contributing to a 5.0% increase in weekend RevPAR.
Group Demand and Top 25 Markets
Group demand played a crucial role in driving ADR and RevPAR growth in the Top 25 Markets, particularly from Wednesday to Thursday. Excluding Las Vegas, RevPAR rose by 5.5%, with significant contributions from cities like Atlanta, Boston, New York, San Francisco, and Tampa. San Francisco, in particular, saw a 24.0% increase in RevPAR due to a nearly 50% rise in group demand. Overall, the Top 25 Markets witnessed a 7.5% increase in RevPAR from Wednesday onwards, excluding Las Vegas.
Global RevPAR Performance
Globally, RevPAR on a same-store basis experienced its most significant growth since the end of Q1, rising by 14.2% on an 11.3% ADR increase. France led the way with a 43.9% increase, driven by the Spring/Summer Fashion Week finale in Paris. Other countries, including India, Japan, Germany, and Canada, also reported double-digit RevPAR gains. Notably, Japan’s Osaka saw a 58.3% increase in same-store RevPAR due to Expo 2025, while Canadian cities like Toronto and Vancouver posted significant growth.
Outlook and Future Expectations
While the recent ADR growth offers a positive outlook, questions remain about its sustainability. With occupancy still declining, the continuation of ADR growth at or above the rate of inflation seems uncertain. However, the strong group demand, particularly in the Top 25 Markets, and favorable calendar conditions could lead to better-than-expected ADR performance in the coming weeks.
Discover more at STR.
STR Weekly Insights: U.S. Hotel Industry Sees First RevPAR Growth Since August Amidst Global Gains – Image Credit CoStar
U.S. Hotel Industry Overview
For the week ending 11 October 2025, the U.S. hotel industry witnessed a notable increase in the average daily rate (ADR) and revenue per available room (RevPAR), marking a positive shift in the sector. This period saw ADR grow at the rate of inflation for the second consecutive week, with a 2.6% increase, while RevPAR rose by 0.6%—the first weekly rise since the end of August. Despite these gains, occupancy continued to decline for the 16th straight week, albeit at a slower rate than previous weeks.
ADR and RevPAR Trends
The ADR growth was unexpected, given the modest average increase of 0.2% in the preceding 21 weeks. The rise was widespread, with the Top 25 Markets experiencing a 2.8% increase, despite a downturn in Las Vegas, and the rest of the country seeing a 2.4% rise. The ADR increase was particularly pronounced from Wednesday onwards, with a 4.1% surge in the Top 25 Markets over the weekend. This growth was driven by events such as college football games and the start of the fall break, which boosted demand in smaller markets.
Impact of College Football and Holidays
The weekend saw significant RevPAR gains, with 31 markets recording double-digit increases, the highest since March. Madison led with an 81% ADR gain, primarily due to the Wisconsin-Iowa football game. The weekend was further buoyed by the start of the Columbus Day holiday weekend and the fall break for 16% of K-12 students, contributing to a 5.0% increase in weekend RevPAR.
Group Demand and Top 25 Markets
Group demand played a crucial role in driving ADR and RevPAR growth in the Top 25 Markets, particularly from Wednesday to Thursday. Excluding Las Vegas, RevPAR rose by 5.5%, with significant contributions from cities like Atlanta, Boston, New York, San Francisco, and Tampa. San Francisco, in particular, saw a 24.0% increase in RevPAR due to a nearly 50% rise in group demand. Overall, the Top 25 Markets witnessed a 7.5% increase in RevPAR from Wednesday onwards, excluding Las Vegas.
Global RevPAR Performance
Globally, RevPAR on a same-store basis experienced its most significant growth since the end of Q1, rising by 14.2% on an 11.3% ADR increase. France led the way with a 43.9% increase, driven by the Spring/Summer Fashion Week finale in Paris. Other countries, including India, Japan, Germany, and Canada, also reported double-digit RevPAR gains. Notably, Japan’s Osaka saw a 58.3% increase in same-store RevPAR due to Expo 2025, while Canadian cities like Toronto and Vancouver posted significant growth.
Outlook and Future Expectations
While the recent ADR growth offers a positive outlook, questions remain about its sustainability. With occupancy still declining, the continuation of ADR growth at or above the rate of inflation seems uncertain. However, the strong group demand, particularly in the Top 25 Markets, and favorable calendar conditions could lead to better-than-expected ADR performance in the coming weeks.
Discover more at STR.
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The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making
The point of using Lorem Ipsum is that it has a more-or-less normal distribution of letters, as opposed to using ‘Content here, content here’, making it look like readable English. Many desktop publishing packages and web page editors now use Lorem Ipsum as their default model text, and a search for ‘lorem ipsum’ will uncover many web sites still in their infancy.
It is a long established fact that a reader will be distracted by the readable content of a page when looking at its layout. The point of using Lorem Ipsum is that it has a more-or-less normal distribution
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