U.S. hotel performance weakened notably in late September

Falling occupancy and weak group demand push RevPAR down for a 14th consecutive week

U.S. hotel performance extends decline through late September as the early-week timing of Rosh Hashanah dampened business and group travel. Occupancy and average daily rates both declined, marking the 14th consecutive week of falling occupancy and pushing September RevPAR into negative territory.

Key takeaways

• RevPAR decline: U.S. revenue per available room fell 6.6% in the week ending 27 September, driven by both lower occupancy (-2.8 ppts) and a 2.5% ADR drop.
• Calendar impact: The early-week Rosh Hashanah observance depressed demand most on Monday to Wednesday, with limited weekend recovery.
• Group travel hit hardest: Group demand fell 19.4% nationwide and more than 25% during the three-day observance, especially affecting luxury and upper-upscale hotels.
• Top 25 markets underperformed: Major cities saw RevPAR down 11.3% versus 2.3% elsewhere, while St. Louis and New York bucked the trend thanks to local events like the U.N. General Assembly.
• Event-driven outliers: Long Island (+76.4%) and Georgia North (+40.8%) saw major RevPAR spikes due to the Ryder Cup and Alabama–Georgia football game.
• Global weakness uneven: Same-store RevPAR declined in China (-5%), France (-14.2%), Germany, and India, while Italy, Spain, Japan, and Mexico posted gains.
• September outlook: With continued softness, U.S. RevPAR is expected to end the month down more than 2%, though October could bring modest recovery as group and business travel resume.

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