U.S. hotel performance extended its growth streak into the first week of June, with revenue per available room (RevPAR) increasing 5.3%.
That marks nine consecutive weeks of RevPAR growth and eight straight weeks in which U.S. hotel occupancy, room demand and average daily rate (ADR) all increased year over year.
ADR remains the primary driver of performance, outpacing hotel demand growth for six consecutive weeks. Year-to-date ADR growth has nearly doubled, rising from 1.5% in the first two months of the year to 2.7% through May. Notably, ADR growth has also exceeded the rate of inflation for the past four consecutive weeks, indicating strengthening pricing power in real terms.
Recent gains in room demand also point to a continued recovery in business-related travel for U.S. hotels. Over the last four weeks, 97% of the increase in rooms sold has come from weekdays Sunday through Thursday. For the week of May 31 to June 6, U.S. hotel weekday room demand accounted for the entirety of the overall increase, as weekend demand was negative. This concentration of demand growth resulted in a 6.7% increase in weekday RevPAR over the last four weeks, compared with 3.3% growth on weekends.
The gap widened further last week, with weekday RevPAR up 7.2% versus a 1.7% increase on the weekend. This growing divergence reinforces that recent demand gains are being driven primarily by business and group travel rather than leisure demand. Supporting this trend, group demand at luxury and upper-upscale hotels increased 6.4% last week, reflecting stronger conference-related activity.
This weekday-driven demand profile has been most pronounced in large metropolitan markets where business and group travel are more concentrated. The top 25 U.S. hotel markets posted a combined 6.6% increase in RevPAR last week, with all but four markets recording growth. Weekday performance was the primary driver, as weekday RevPAR across these markets increased 10.2%, including double-digit gains in 11 markets. This concentration of growth in large markets further underscores the role of business and group travel in driving current performance trends.
Chicago led all major markets with a 23.9% increase in RevPAR, driven by a 14.5% rise in ADR and a 6.4-percentage-point gain in occupancy. The market benefited from a full slate of demand drivers, including multiple business conferences, the Chicago Blues Festival and the U.S. men’s national team’s final pre-World Cup friendly against Germany. These overlapping events pushed weekend occupancy to 92.9%, lifting ADR by 25.1% and driving a 34.2% increase in weekend RevPAR. Chicago's central business district was the big winner as weekly RevPAR increased 29.4% with hotel occupancy above 92%. Over the weekend, RevPAR grew 41.8% with hotels in the central business district essentially sold out at 97.6% occupancy. The submarket had the nation’s highest weekend hotel occupancy and it ranks among the highest of the past 75 weeks.
At the class level, luxury hotels once again led all classes, with RevPAR increasing 10% during the week of May 31 to June 6. This marks the sixth consecutive week of outperformance for the luxury hotel segment. Growth was driven by increased weekday demand in major markets, where business and group travel activity is more concentrated, resulting in a 14.6% gain in weekday RevPAR.
In contrast, economy hotels across the U.S. continued to lag, remaining the only class with negative RevPAR as declines in weekend demand weighed on performance. This divergence continues to reflect weaker discretionary leisure demand at the lower end of the class scale.
Markets outside the top 25 recorded a 4.3% increase in RevPAR last week. While these hotel markets did not experience the same level of weekday business-driven compression seen in larger urban areas, performance was supported by localized event demand. These include the Memorial Tournament in Columbus, Ohio, and the Railbird Music Festival in Lexington, Kentucky — both of which helped drive some of the strongest hotel performance gains of the week. Markets tied to AI-related data center development also continued to stand out, particularly in weekday demand.
RevPAR declines outside the US
Outside the U.S., global hotel RevPAR dropped 1.8% on a constant USD and comparable hotel basis due to falling occupancy and ADR.
The decrease was led by the Gulf Cooperation Council (GCC) countries where RevPAR dropped by 51.9% due to difficult comparisons to 2025’s Eid al-Adha religious observance and the ongoing war with Iran. All GCC countries saw RevPAR retreat. Saudia Arabia had the largest RevPAR decline (-58.9%) followed by Oman and the United Arab Emirates, where the measure was down by more 45%. Excluding GCC, global RevPAR was up 3.3%. Recall that in the prior two weeks, GCC RevPAR advanced due to this year’s observance of Eid al-Adha.
Hotels in Germany and Mexico also reported declining RevPAR. In Germany, RevPAR fell in nine of its 13 markets, including Berlin, the country’s largest market, where RevPAR was down 33% on a 27% ADR decline. Munich’s RevPAR dropped 62% also on ADR.
RevPAR in Mexico has fallen for 30 consecutive weeks with most of the decline ADR-centered. However, this week, Cancun and Mexican Caribbean saw sharp demand decreases. Not all markets are down. Gulf of Mexico, Mexico City, Monterrey, and Pacific South all had solid to strong growth.
All other key countries including the Caribbean, Canada, China, France, India, Italy and the U.K. reported weekly RevPAR growth.
Cole Martin is Analytics and Insights Specialist at STR and Isaac Collazo is senior director of analytics at STR.