STR Weekly Insights: U.S. Lodge Business Faces Challenges Amidst International Development Surge – Picture Credit score CoStar
U.S. lodge efficiency confronted challenges from hurricane-affected markets, whereas world RevPAR sees vital progress, notably within the Center East.
The most recent STR Weekly Insights report, overlaying the interval from November 16 to November 29, 2025, highlights blended efficiency within the lodge trade. Whereas the U.S. market struggles with hurricane-related aftermath, world markets, particularly within the Center East, present strong progress. This text delves into the report’s key findings, inspecting tendencies in RevPAR, occupancy, and ADR throughout areas and market segments.
U.S. Market Efficiency
In the US, the lodge trade’s efficiency over the 2 weeks ending November 29, 2025, was marked by a slight 0.3% decline in income per out there room (RevPAR). This decline was attributed to a 0.7 proportion level drop in occupancy, regardless of a 0.9% enhance within the common day by day price (ADR). The affect of hurricanes Helene and Milton, which struck in September 2024, continues to have an effect on year-over-year comparisons, notably within the 13 affected markets. Excluding these hurricane-impacted areas, RevPAR elevated by 0.9% over the fortnight.
The report notes that occupancy declines, a persistent challenge all year long, have slowed considerably when excluding hurricane markets. Occupancy was almost flat over the previous two weeks, with solely a 0.1 proportion level drop. Nonetheless, ADR progress stays under the inflation price, rising by simply 1.1%.
Among the many High 25 Markets, cities like Dallas, Philadelphia, San Francisco, and St. Louis skilled sturdy double-digit RevPAR progress. San Francisco and St. Louis, particularly, noticed vital will increase of 51.3% and 35.5%, respectively. Conversely, Tampa skilled a 28.2% decline in RevPAR over the fortnight, primarily resulting from final yr’s hurricane-driven progress. Different markets corresponding to Atlanta, Boston, Chicago, Houston, and Seattle additionally noticed notable declines in RevPAR.
Group Demand Developments
Group demand for Luxurious and Higher Upscale inns declined by 1% over the 2 weeks, regardless of sturdy progress in 5 High 25 Markets: St. Louis, San Francisco, Oahu, Detroit, and Washington, DC. The expansion was primarily noticed within the week ending November 22, however some markets maintained sturdy group demand into the Thanksgiving week.
St. Louis and San Francisco benefited from elevated convention exercise, with occasions corresponding to Microsoft Ignite 2025 and the Worldwide Convention for Excessive Efficiency Computing driving demand. St. Louis, particularly, has seen a 12.7% enhance in RevPAR because the starting of Q2, following the reopening of its conference middle.
Thanksgiving Week Evaluation
Thanksgiving week within the U.S. confirmed the third-highest room demand up to now 26 years, with 19.8 million rooms bought. Though this was barely down from the earlier yr, Wednesday and Thanksgiving Day ranked second in demand individually. Thanksgiving Day occupancy reached 54.9%, marking the eighth-best efficiency in historical past.
International Market Efficiency
Globally, RevPAR elevated by 8.7% over the previous two weeks, pushed by a 6.9% achieve in ADR. The Gulf Cooperation Council (GCC) nations led the expansion with a 30.4% surge in RevPAR, supported by seasonal occasions. Different areas, together with Australia, the Caribbean, France, India, Japan, and Spain, additionally skilled vital RevPAR progress.
In China, RevPAR grew by 1.2% over the 2 weeks, persevering with a six-week progress development. The Luxurious class inns noticed a 9% enhance in RevPAR, whereas Midscale and Economic system class inns skilled declines. Amongst main markets, Sanya and Hong Kong reported the best RevPAR progress charges.
Close to-Time period Outlook
Wanting forward, the U.S. market faces potential challenges in December, with expectations of flat to declining RevPAR resulting from vacation timing. Conversely, worldwide markets are anticipated to take care of their progress trajectory because the yr attracts to an in depth.
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