The U.S. resort business experiences a fourth consecutive week of declining income per obtainable room (RevPAR), whereas Japan and Canada present robust development within the international market.
U.S. Resort Trade Developments
The U.S. resort business reported a continued decline in income per obtainable room (RevPAR) for the week ending 19 July 2025, marking the fourth consecutive week of decreases. RevPAR fell by 3.3% yr over yr, barely bettering from the earlier week’s 3.7% drop. The first contributors to this decline had been a 1.8% lower in room demand and a 0.7% drop within the common every day charge (ADR). Regardless of a modest 0.8% enhance in room provide, weekly occupancy fell by 1.9 share factors to 71.6%.
Probably the most vital RevPAR declines had been noticed in main metro markets, with the Prime 25 Markets experiencing a 4.3% lower and different metro markets seeing a 4.7% drop. Las Vegas, Houston, and Los Angeles had been the first drivers of this unfavorable pattern. Las Vegas skilled a 17.1% decline in RevPAR, primarily on account of lowered worldwide arrivals and the financial influence on lower-income households. Houston skilled a 38.3% drop on account of robust comparisons with final yr’s demand spikes from Hurricane Beryl and the “Derecho.” Los Angeles confronted an 8.9% decline, with the Central Enterprise District experiencing a 17.8% drop amid market tensions.
Impression on Totally different Market Segments
Excluding the three main markets of Las Vegas, Houston, and Los Angeles, the U.S. RevPAR would have declined by a lesser quantity, at 1.9%. ADR, excluding these markets, was down by 0.2%, remaining under the speed of inflation. Within the Prime 25 Markets, RevPAR was comparatively flat at -0.6%, with a 1.0% enhance in ADR when excluding these markets.
Metro markets exterior the Prime 25 noticed the most important RevPAR decline, at 4.7%, accompanied by a 2.8% lower in ADR. Non-metro and rural markets additionally skilled decreases, primarily on account of a 1.0 share level drop in occupancy. Since Memorial Day weekend, summer time demand has decreased by 1.6 million room nights, or 0.7%, in comparison with the earlier yr, with ADR remaining flat at 0.1%. The Luxurious section was the one chain scale to see RevPAR development, although demand elevated in all scales besides Financial system and Independents.
World Market Efficiency
Globally, RevPAR, excluding the U.S., elevated for the third consecutive week, with a 0.5% rise pushed solely by ADR. Though occupancy fell by 1.3 share factors in comparison with final yr, it reached the best stage of the yr at 72.2%. Japan maintained its prime RevPAR place, with Osaka main the positive factors, pushed by the EXPO 2025 occasion. Canada posted the second-highest RevPAR achieve, with ten of its 22 markets experiencing double-digit will increase. Spain and the U.Ok. additionally confirmed robust efficiency, pushed by vital occasions and elevated journey.
Conversely, France and Germany skilled declines on account of shifts in sporting occasion calendars, whereas China’s RevPAR fell by 6.7%, with vital declines in Beijing and Guangzhou.
Outlook
The U.S. resort business faces a mixture of optimistic and unfavorable indicators transferring ahead. Analysts anticipate nuanced interpretations of efficiency knowledge on account of robust year-over-year comparisons, significantly in September and October, following the impacts of hurricanes Helene and Milton. Sociopolitical elements are additionally anticipated to have an effect on short-term demand in choose markets. Regardless of present challenges, American Airways CEO Robert B. Isom expressed optimism, predicting that July will mark the low level, with efficiency anticipated to enhance sequentially every month as demand strengthens.
Uncover extra at STR.