Overview of U.S. Hotel Performance

The U.S. hotel industry experienced a 0.7% decline in Revenue Per Available Room (RevPAR) for the week ending October 18, 2025, following a brief period of growth. This decline is attributed to a 17-week consecutive drop in occupancy, despite a 1.7% increase in Average Daily Rate (ADR), which remains below the approximately 2.7% inflation rate. Over the past 25 weeks, RevPAR has decreased in 18 of them, with occupancy down in all but 2 weeks.

Impact of Dreamforce 2025 on San Francisco

San Francisco emerged as a significant contributor to the industry’s performance due to hosting Dreamforce 2025, a major Salesforce conference. The city’s weekly RevPAR surged 85.3% year over year, when the event was held in September. Both occupancy and ADR increased during the conference. Excluding San Francisco, U.S. RevPAR would have declined by 1.9%.

Performance in Major U.S. Markets

Despite the overall decline, certain markets showed positive trends. The Top 25 Markets experienced a slight increase in weekly RevPAR (+0.1%) driven by solid ADR growth (+2.8%). Notably, weekday ADR growth exceeded 9% in Chicago, Las Vegas, and Washington, D.C. Eleven of the Top 25 Markets reported weekday ADR growth above the inflation rate. However, excluding San Francisco, RevPAR growth was limited to 1% due to significant declines in Miami, New Orleans, Orlando, Tampa, and San Diego.

Outside the Top 25 Markets, weekday RevPAR fell 1% due to lower occupancy, while ADR rose 1.1%. Less than half of these markets saw weekday RevPAR improvement. Total U.S. weekday RevPAR increased by 2.4%.

Shoulder and Weekend Performance

Shoulder days (Sunday and Thursday) in the Top 25 Markets saw mixed results, with RevPAR down 0.8% due to declining occupancy, despite a 2.1% increase in ADR. Excluding San Francisco, RevPAR on shoulder days would have decreased by 2.7%. Anaheim, Chicago, and St. Louis experienced double-digit RevPAR increases, offset by declines in Atlanta, Houston, Las Vegas, Miami, and Tampa.

Weekend (Friday and Saturday) RevPAR fell by 4.2% nationwide, with a sharper decline of 6.6% in the Top 25 Markets. Eight markets, including Miami, experienced double-digit declines. College football events drove RevPAR increases in Birmingham, Alabama, with notable gains in Alabama North and South.

Challenges from Hurricane-Affected Markets

Thirteen markets impacted by Hurricanes Helene and Milton continued to drag down overall U.S. results, with a collective 19.2% decline in RevPAR. Excluding these markets, U.S. RevPAR increased by 0.3%, but excluding San Francisco, it would have decreased by 1%.

Orlando showed mixed results, with strong ADR growth (+8.5%) despite a 5.9 percentage point drop in occupancy. Luxury-class hotels in Orlando saw the largest ADR increase (+12.7%).

Global RevPAR Trends

Globally, RevPAR returned to normal levels, with a 6.4% increase driven by a 7.1% rise in ADR. Germany, Spain, and Italy reported double-digit ADR growth. Germany’s performance was bolstered by the K 2025 trade fair in Düsseldorf, resulting in a 201% increase in RevPAR. Spain and Italy also showed widespread RevPAR growth across multiple markets.

Outlook for the Hotel Industry

The U.S. hotel industry’s outlook remains cautious. Specific events and markets, such as Dreamforce 2025 largely drove the recent ADR gains. With continued declines in occupancy, October RevPAR is expected to be flat or decrease. Outside the U.S., ADR growth is stronger and more widespread, suggesting positive RevPAR trends globally.

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