STR Weekly Insights: 14-21 June 2025

Analysis by Isaac Collazo, Chris Klauda

All financial figures represent U.S. dollar constant currency. 

Highlights

• Positive U.S. performance following a three-week decline
• Juneteenth impacted day-of-week trends
• Global RevPAR slowed because of market event shifts 
• Japan maintained top growth spot
• Germany declines continue due to tough Euro comp from last year

Travel picked up for the official start of summer

U.S. hotel demand and revenue per available room (RevPAR) each increased for the week ending 21 June, breaking a three-week run of declines. Demand followed TSA screenings, which also grew year over year following three weeks of declines. 

Some of this turnabout stems from a later end date for many U.S. school districts, as shown in STR’s School Break Report. Demand increases were even more pronounced in the northern part of the country, where summer breaks tend to start later. This further highlights the impact school calendars have on hotel performance trends. 

Additionally, the movement of the Juneteenth holiday from Wednesday last year to Thursday this year made for easy comps early in the week and for a stronger weekend as many workers likely opted to create a four-day weekend. RevPAR for the week advanced 3.3%, the result of average daily rate (ADR) up 2% and occupancy rising 0.9 percentage points (ppts). This was the first weekly occupancy increase since early May. 

Juneteenth lifted T25 early in the week, rest of the U.S. over the weekend

With Juneteenth later in the week, the Top 25 Markets (T25) saw strong RevPAR gains Sunday (+2.5%) through Tuesday (+12%). That was followed by a slowdown midweek and then a pickup on the weekend. 

Markets outside the T25 and other large city markets saw a boost starting Thursday that extended through the weekend. The beginning of the week was slower outside the T25. 

Impact from Las Vegas and Houston

Two major markets, Houston and Las Vegas, continued to impact U.S. performance averages. In the most recent week, RevPAR in Las Vegas fell 17.4%. Given that Las Vegas is the largest market in the country (3% of total U.S. room supply), it always has an impact on total U.S. performance. According to the APIS/I-92 Monitor, Vegas was one of the major markets to see a more notable drop in international arrivals during the spring months. Given the hotel demand trend, the decline likely continued in June.  

Houston’s RevPAR dropped 3.4% due to a difficult comparable from 2024. Last year’s performance in the market was elevated by displacement demand as several storms created widespread flooding and power outages. 

Excluding these two markets, U.S. RevPAR increased 4.2% with ADR up 2.3% and occupancy up 1.3 ppts. Additionally, the performance declines seen in the U.S. over the previous two weeks are less pronounced when these two markets were excluded.

Bifurcation continues with Luxury on top once again

RevPAR growth remained bifurcated with Luxury advancing 9.6%, lifted primarily by ADR (+7.0%) while occupancy increased 1.7 ppts. Upper Upscale and Upscale followed with RevPAR up 4.3% and 3.9%, respectively. Upper Midscale and Midscale hovered around 2% while Economy declined slightly. 

Bifurcation is even more extreme in the Top 25 Markets with RevPAR ranging from +10.9% in Luxury hotels to -5.2% in Economy hotels.

Group demand returned

After a three-week slide, Group demand in Luxury and Upper Upscale hotels returned, advancing 1.3% with ADR up 4.1%. It was a slow group week in Las Vegas, and when excluding Las Vegas, U.S. Group demand increased 2.9%. T25 markets seeing the strongest group performance were New Orleans, San Diego, Boston and Chicago. Transient demand also increased 4% with ADR rising 2.5%. 

Modest Global RevPAR slowdown with some impact due to calendar comps

Global RevPAR retreated for the first time in four weeks. Occupancy (-1.4 ppts) was the main driver of the modest decline as ADR was basically flat (-0.1%). While overall global RevPAR was down across the major countries, most posted positive overall performance because of ADR. 

• Japan continued to hold the top spot (RevPAR: +31.2%) with all markets seeing RevPAR gains. 
• Canada followed, increasing RevPAR 8.1% as 17 of the 22 markets posted gains. 
• In Italy (RevPAR: +8.0%), 13 of 15 markets advanced. 
• Indonesia (+7.7%) was lifted by a calendar shift of the Idul Adha public holiday.

Four key countries posted declines:

• Germany is facing a tough comp to last year when markets across the country hosted Euro 2024. 
• China’s decline was seen across much of the country including its 10 largest markets. 
• The U.K. felt the loss of the Taylor Swift tour, which took place last year in London and Cardiff. 
• France saw RevPAR slow across most of the country while Paris and Ile-de-France advanced. This flip flop is most likely impacted by the slow down Paris experienced last year ahead of the Olympics.