- U.S. hotel RevPAR was flat (-0.1%) as strong weekend demand offset weekday declines.
- Secondary and rural markets outperformed top cities, with many seeing double-digit RevPAR growth.
- Philadelphia, Dallas, and Orlando led major markets in performance, driven by strong group and leisure demand.
- Group demand held steady, with non-top 25 markets showing notable growth.
National Overview
Hotels across the U.S. delivered mixed results in the final full week of June. Weekend travel was a bright spot, with RevPAR on Friday and Saturday rising 3.2%, but soft business travel from Monday to Wednesday dragged national performance down by 2.2%, according to CoStar. As a result, RevPAR remained flat overall (-0.1%), with both occupancy and ADR showing little to no movement.
Market Highlights
Philadelphia emerged as a standout among top 25 U.S. hotel markets, posting a 10.7% jump in occupancy and a 26.7% increase in RevPAR. Only nine of the top 25 markets posted growth, with Dallas and Orlando also showing double-digit RevPAR gains. By contrast, other top markets experienced declines, especially on weekdays.
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In contrast, non-top 25 urban markets and rural areas showed stronger performance:
- Large city markets (outside the top 25) saw a 1.9% increase in RevPAR, with 17 cities reporting double-digit gains.
- Rural/non-metro areas outperformed all segments, with a 2.1% weekly RevPAR gain, led by regions in North Louisiana, Southern Wisconsin, and Northern Missouri.
Segment & Group Trends
Luxury hotels led chain-scale performance with a 1.7% RevPAR increase, while economy hotels lagged behind with a 1.8% decline. Weekend patterns favored all segments except economy, which still saw its best results on weekends compared to weekdays and shoulder periods.
Group demand was largely unchanged, though non-top 25 markets saw a 4.2% increase, while the top 25 declined by 3.1%. Markets like Dallas, Miami, and Philadelphia showed solid group activity, while a holiday calendar shift (Juneteenth and July 4th both falling later in the week this year) may have contributed to weaker midweek demand.
Outlook
With the Fourth of July holiday falling on a Friday, hotels are likely to benefit from a long weekend boost in leisure travel. Summer events—concerts, fairs, festivals—are expected to drive further demand, especially in smaller markets where such events have outsized impact.
