STR Weekly Insights: 19-25 October 2025

Analysis by Isaac Collazo

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

Highlights

• U.S. RevPAR down against strong week last year
• Group demand falls for a second consecutive week
• 49% of U.S. properties down 5% or more
• D.C. down on government shutdown and conference shift
• Global growth continues
• Strong ADR-driven week for France
• India down during Diwali 

RevPAR falls sharply against strong comp

The week ending 25 October 2025 was a bad one for the U.S. hotel industry. Revenue per available room (RevPAR) dropped 5.3% year over year on falling average daily rate (ADR) and occupancy. 

Since May, weekly occupancy has increased just twice with the measure falling 2.5 percentage points (ppts) in the most recent week. ADR was down 1.7%, which was the first weekly decrease in a month. 

The Top 25 Markets influenced the national average as RevPAR for the group fell 8.1%. The remainder of markets were down 2.5%. Unlike previous months, we can’t put too much blame on Las Vegas as it only accounted for 140 basis points (bps) of the decrease in the Top 25 Markets and 90bps of the total industry’s decrease. 

While there was no calendar shift impacting this week’s results, it is important to note that the comparable week last year produced a 9.6% increase in RevPAR, driven by the largest occupancy gain up to that point of the year. ADR also grew that week at one of the fastest rates of 2024. Demand during the comparable week last year was also the eighth highest post pandemic and among the best all time. As a result, last year’s performance growth was widespread with RevPAR up by more than 10% in the Top 25 Markets. 

Hurricane markets, those impacted by Hurricane Helene and Milton in 2024, also lifted last year’s results (+24.3%), contributing 70bps to the U.S. total. This year, those markets were down 15% and accounted for 50bps of the decline. So, it could be said that this week had somewhat difficult comparisons. 

Immunity to the RevPAR decline was few and far between

To understand how widespread this week’s decline was, we looked to property-level data. On a same-store basis, nearly half (49%) of hotels saw RevPAR fall by 5% or more, which was the most of the past seven weeks, and nearly a quarter saw a decrease of more than 20%. Among the Top 25 Markets, 55% of properties saw weekly RevPAR decline by 5% or more with 44% reporting double-digit decreases. 

Nine of the Top 25 Markets saw RevPAR decline by more than 10% with Las Vegas, New Orleans, Tampa, and Washington, D.C. falling by 20% or more. While most of these markets were driven by a steep decrease in occupancy, New Orleans saw its weekly ADR drop by more than 35% due to a difficult comp from last year’s Taylor Swift Eras Tour (25-27 October 2024). Miami also had difficult comps from the same tour with ADR down 23.5% on Sunday. 

In all, 19 of the Top 25 Markets reported a RevPAR decrease, including New York City, which was down 0.7% on falling occupancy. 

Government shutdown impacting D.C. 

Washington, D.C. has had a difficult year with RevPAR from April to September down 6.7% on falling occupancy and ADR. October MTD RevPAR is down 7.6%, but that is not as bad as other Top 25 Markets like Atlanta, Houston, Miami, New Orleans, and Tampa. 

The most recent week’s decrease in D.C. (-23.8%) was among the worst of the key markets, which is likely due to the ongoing government shutdown and to conference shifts, particularly the annual meetings of the International Monetary Fund and the World Bank Group, which was two weeks earlier this year. 

A year ago, D.C. market RevPAR increased 22% on a 15.9% ADR increase, and nearly all submarkets reported double-digit gains, led by the D.C. CBD with RevPAR up 29.7% on a 27.4% ADR increase. This year, the CBD’s RevPAR fell 32.9% via a 22.7% ADR decline. While the ADR decline didn’t fully erase the growth from last year, the demand side certainly did, illuminating the impact of the government shutdown. A year ago, the market saw demand grow by 36,600 room nights with the CBD contributing 5,900 room nights. This year, demand in Washington, D.C. fell by 64,000 room nights with a third of the decline coming from the CBD. 

Group demand down against last year’s post-pandemic record

Group demand in Luxury and Upper Upscale class hotels fell for a second consecutive week, down 5.7% for the most recent period. In the comparable week last year, Group demand reached its highest level of the year and the highest post pandemic. In fact, the number of Group room nights sold in the matching week last year was the ninth highest since STR began weekly tracking of Groups and less than 100,000 room nights from the all-time weekly record set in 2018. 

RevPAR was down in every class of hotels with Luxury hotels falling 3.8% and most classes seeing a decline of more than 5%. The only exception was Economy, where RevPAR fell by 10%.

Another good week for most other countries

Global hotels on a same-store basis, excluding the U.S., had another solid week with RevPAR up 6.5% on ADR (+6.6%). Occupancy fell for a second consecutive week but stayed above 75%. ADR growth was led again by France (+14.8%) with RevPAR increasing by a similar amount. Other countries seeing strong RevPAR growth from ADR gains included Japan, Italy, and Spain. 

Italy and Spain saw double-digit RevPAR growth from double-digit ADR gains. RevPAR in Spain was up 10.4% on an 8.6% ADR increase. 

Countries and areas that saw weekly RevPAR decreases included China (-0.2%), the Caribbean (-3%) and India (-37.6%), which we attribute to Diwali (Deepavali) observance.

Like in the previous week, France’s stellar gain was grounded in Parisian hotels, where RevPAR increased 28.6% on a 25.4% ADR gain. In total,10 of the country’s 12 markets saw growth with eight posting double-digit RevPAR increases. Provence-Alpes-CDA and Ile-de-France were the only two markets down, with RevPAR falling in both by more than 20% 

Of the 17 markets in India, all but four reported RevPAR declines with many down by more than 30%, including New Delhi and Mumbai, which were down by 50%.

Canadian same-store RevPAR increased 6.7%, which was almost identical to the previous week’s gain. Strong RevPAR gains were reported in Toronto (+26.5%), Vancouver Island (+14.4%) and Ottawa (+12.8%).

What to think?

It is rare that we blame a down U.S. week on difficult comps when there is not a calendar or event shift. But, this was one of those weeks as last year’s results were stellar.

What the results don’t show is that U.S. demand for this week was among the highest since 2000 (138^th of 1,348 weeks). Thus, while we recoiled at the sharp RevPAR decline, we must keep in mind that rooms are being sold. That being said, the week’s decrease will impact the month’s result. We now expect U.S. October RevPAR to fall by roughly 1%. A week ago, we were expecting a flat to slightly down month.