STR Weekly Insights: 6-12 April 2025

Analysis by Isaac Collazo, Chris Klauda

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

Highlights

• Solid U.S. RevPAR, excluding 2024 Eclipse markets
• Healthy Group business ahead of Easter
• Lower chain scale hotels impacted the most by the Eclipse comp
• Amid economic uncertainty, demand grew the past four weeks
• Global performance soars on the wings of spring holidays and events
   

Decent U.S. RevPAR when excluding the eclipse markets

Expectations for flat U.S. revenue per available room (RevPAR) were realized in the week ending 12 April as difficult comparisons to last year’s solar eclipse week limited the measure to 0.2% growth. Excluding the 16 markets in the eclipse’s path, RevPAR rose 2.8%, driven by a 2.0% increase in average daily rate (ADR). 

Markets across the country benefitted from strong Group demand along with the continuation of spring break travel. Top 25 Market RevPAR (excluding Dallas, an eclipse comp market) increased 2.9% while the rest of the country posted equally strong RevPAR (+2.7%). The Easter/Passover calendar shift lifted growth as meeting planners took advantage of availability before the observances begin. Another tailwind was spring break with 14% of students on holiday according to STR’s School Break Report. However, the start of Passover on Saturday impacted weekend results, especially in the Northeast and Top 25 Markets. 

Even though uncertainty has risen significantly in the last month, demand over the past four weeks was up 1.7%.
 

Start of the week impacted the most by eclipse

Eclipse markets*, which make up just under 10% of U.S. room supply, saw weekly RevPAR decrease 24.2%, mostly on ADR (-15.2%), while occupancy retreated 7.5 percentage points (ppts). Sunday and Monday took the biggest hit with RevPAR declines of -63.7% and -41.4%, respectively. RevPAR turned positive for the group on Wednesday before returning to negative territory on the weekend. Excluding Sunday and Monday, RevPAR for this group of markets was down 3.2%, but ranged from +52.5% in Indianapolis to -24.3% in San Antonio. Nine of the 16 saw RevPAR growth post -eclipse comparison.   

*Eclipse markets: Arkansas Area, Austin, Buffalo, Cleveland, Dallas, Dayton/Springfield, Illinois South, Indiana South, Indianapolis, Little Rock, New York State Area, Rochester, San Antonio, Syracuse, Texas Central, and Vermont.

Non-eclipse markets flip flopped 

Excluding the eclipse markets, Top 25 Market RevPAR went from increase to decrease as the week unfolded, while the rest of the country saw the opposite. Top 25 Market RevPAR grew by double digits from Sunday through Tuesday, slowing on Wednesday (+0.8%) and declining thereafter. The largest decrease was on Saturday (-5.6%) at the start of Passover. 

The opposite occurred elsewhere with a negative RevPAR comp on Sunday (-6.1%) and slow improvement throughout the week ending on Saturday, when RevPAR increased 5.1%. Change in ADR had the greatest impact on performance in both market types. 

This week’s callouts include:

• Orlando posted the largest RevPAR growth (+23.8%) of any Top 25 Market with double-digit gains across every day, which is likely a result of spring break travel along with conferences as Group occupancy increased 4.5 ppts. 
• RevPAR in San Francisco grew 22.9% this via the industrial tech conference, AVEVA World. Group occupancy in San Francisco also grew the most of any Top 25 market (+8.1ppts). The market has posted strong group results in the past three weeks. 
• Detroit also saw strong RevPAR growth, up 22.2%, benefiting from RAPID + TCT, which was co-located with three other shows. Group occupancy rose 5.3ppts.
• Beyond the Top 25, strong RevPAR gains were seen in Augusta, Georgia hosting the annual Master’s golf tournament. RevPAR increased 13.0%, which is a significant lift given that the comparison was against the matched tournament dates last year. Occupancy reached 86.9% at an ADR of $543, the second highest in the country after Maui Island. Keep in mind, however, Augusta has been running high occupancy post-Hurricane Helene.
• Other top RevPAR performers included popular spring break markets, such as Gatlinburg/Pigeon Forge (+63.0%) and the Florida Panhandle (+32.0%).

Group travel alive and well in the Top 25 Markets

Group demand in Luxury and Upper Upscale hotels softened this week, increasing just 0.5% following two weeks of double-digit gains. Among the Top 25 Markets, however, Group demand advanced 4.0%, following 30% growth in the past two weeks. Last year’s eclipse had little impact on Group travel since relatively few Luxury and Upper Upscale hotels were in the path of the eclipse and the event occurred on a Monday last year, which is typically a slower performing day for Group travel. Group demand was positive in 16 of the Top 25 Markets with St. Louis and Las Vegas posting strong Group gains. Group ADR in the Top 25 Markets increased 3.8%. 

Over the next two weeks, Group demand is expected to decline significantly, due to Passover and Easter, and then return to normal patterns in May.  
 

Eclipse comp had greatest impact on lower chain scales

Bifurcation continued across the chain scales with the largest RevPAR gains in Luxury (+4.9%), driven entirely by ADR. Upper Upscale followed with a more modest gain (+1.6%) lifted by both ADR and occupancy. The next four chain scales posted steadily declining RevPAR ranging from -1.1% in Upscale to -4.6% in Economy, with ADR the primary culprit. 

While the eclipse comp impacted all chains scales, the greatest impact was across the lower four chain scales. Excluding eclipse markets, all chain scales except Economy posted positive RevPAR with a relatively small increase in the lower scales, ranging from +1.4% in Upscale to +0.4% in Midscale. Economy declined 1.1% while Luxury rose 6.5% and Upper Upscale advanced 3.2%. 
 

Canadian border demand impacted by eclipse comp

Canadian border comparisons this week were challenging because several Canadian markets were in the path of last year’s eclipse and the largest Canadian border market, Detroit, hosted one of the city’s largest co-located tech conferences. Additionally, the Easter/Passover shift has made an apples-to-apples comparison difficult for both the Canadian and Mexican borders. Given this complex backdrop, demand across 1,156 hotels within 100 miles of the Canadian border increased 0.1%, compared to national demand (+0.4%). Excluding the eclipse markets, demand was up 7.7% compared to U.S. demand up 1.4%. On the Mexican border, of the 916 hotels within 75 miles, demand was down 3.4%. Tucson and El Paso, the two largest Mexican border cities, posted demand declines of -3.1% and -13.6%, respectively.

Excluding Economy class hotels from the Canadian numbers, demand was up 0.4%. Excluding Canadian eclipse markets, demand was up +10.1%.

Huge events and spring holidays lift global performance

RevPAR across the globe soared to 12.8%, lifted by major events and spring holidays. ADR almost exclusively drove the increase, rising 12.2%, unlike last week when occupancy played a more significant role in global RevPAR gains. 

• Japan took the top spot with RevPAR up 62.1%. The country benefited from the start of EXPO 2025 along with cherry blossom (Sakura) season. All Japanese markets posted double-digit RevPAR gains led by EXPO 2025 host city, Osaka.
• RevPAR in Germany rose 46.9% with Munich hosting BAUMA 2025, a once every three-year trade fair touted as being the world’s largest for construction and mining equipment. 
• Italy’s RevPAR increased 44.0%, buoyed by Milan where the annual Salon del Mobile, an international furnishing and design event, took place. Last year the event took place a week later.
• RevPAR was significantly down in China (-17.9%) and Indonesia (-22%) because of falling occupancy.
• Canada was also impacted by last year’s eclipse. RevPAR decreased 2.6%. Excluding the three Canadian eclipse markets, Toronto, Montreal, Niagara Region, RevPAR was up 4.3%. 

Looking ahead

Hotel performance will slow over the next two weeks due to Easter and Passover. Last year the two religious observances occurred at different times. This year the impact is expected to be more pronounced. Further out, forward bookings in top U.S. markets for the week ending 3 May are up 4.5% as reflected in our Forward STAR data. Overall, bookings for May and June are up around one percentage. 

The religious holidays will also impact many countries outside the U.S., ending the streak of double-digit RevPAR gains for now. 

As we move past the holiday comps in the coming weeks, the calendar clears up—giving us a better view of how ongoing trade dynamics and economic pressures are truly shaping performance.