U.S. hotels extended their growth streak during the week of Aug. 9-15, with revenue per available room (RevPAR) increasing 6.2% year over year, marking 19 consecutive weeks of growth.
While average daily rate (ADR) remained the primary driver and rose 3.5%, hotel occupancy gains continued to strengthen as demand growth accelerated.
U.S. hotel occupancy rose 1.7 percentage points as demand increased 3%, representing the third consecutive week of demand growth above 3%. That is the first time demand has grown above 3% for three straight weeks since 2023 and another indication that performance gains are becoming increasingly demand-driven rather than relying solely on ADR growth.
The recent U.S. hotel demand strength has been concentrated on weekdays. Sunday-through-Thursday demand accounted for roughly 80% of all hotel demand growth last week, supported by a combination of group and transient travel. Group demand at luxury and upper-upscale hotels increased 3.1%, extending a five-week growth streak and pointing to continued strength in convention and large conference activity. However, transient demand was the larger contributor to weekday gains, suggesting transient business travel continues to improve across many markets.
Summer performance extends beyond the World Cup
Since Memorial Day, U.S. hotel RevPAR has increased 7.5% compared with the same period in 2025. While FIFA World Cup-related travel clearly contributed to the early summer surge, recent performance suggests the industry's momentum has expanded well beyond the tournament's influence.
Every top 25 U.S. hotel market has reported RevPAR growth since Memorial Day, while 87% of markets outside the top 25 have also posted gains. Although summer performance peaked during the World Cup, last week's results reflected many of the same underlying trends that have supported industry growth throughout the season.
Business travel, conferences, major events, and data center-related activity continue to be among the most common drivers of market-level growth. The breadth of those demand generators has helped support performance across both large urban markets and smaller destinations.
Diverse demand drivers lift markets of all sizes
Seven top 25 markets recorded double-digit RevPAR growth last week, illustrating the variety of factors supporting hotel demand across the country. San Diego led major markets with a 22.9% increase in RevPAR, benefiting from a combination of business-related travel and entertainment events that supported elevated performance throughout the week.
Outside the top 25, growth was similarly broad-based, with 74% of markets seeing RevPAR increase. While performance drivers varied by market, data center-related business activity remained a common theme among many of the top performers, particularly in smaller and more rural locations. Texas provides one example of this trend. The state currently has the nation's largest pipeline of data centers under construction, and 10 Texas markets reported double-digit RevPAR growth last week.
Growth extends across the class spectrum
The strength of the summer season is also evident across hotel classes. Every class has reported RevPAR growth since Memorial Day, underscoring the broad-based nature of performance gains.
Luxury hotels have continued to separate themselves from the rest of the industry, leading all other classes in both RevPAR and ADR growth every week this summer. Demand growth, however, has been more evenly distributed. While luxury has captured the highest RevPAR and ADR gains, the middle tiers of the chain-scale spectrum have accounted for a larger share of the increase in rooms sold.
After nearly five months of consecutive RevPAR growth, the latest results suggest the industry's momentum is not tied to a single event, metric or market segment. Strong weekday demand, sustained group activity, and improving transient business travel trends point to a broader set of demand drivers supporting hotel performance as the summer season enters its final stretch.
Global RevPAR slowed but ADR growth solid
Global hotel RevPAR rose for a 10th consecutive week, up 1.7% on a comparable and constant USD basis excluding the U.S. As in past week, ADR drove the growth, with the measure rising 3.4%, its fourth week at or above that growth rate.
After minimal hotel demand decreases, this week’s decline (-1.7%) was the largest in a month. While the Gulf Cooperation Council (GCC) countries continued to see demand retreat, this week’s decline was less than in each of the past two weeks. On the other hand, China, Japan and Mexico saw steeper decreases than in the prior week, which drove the overall demand decline among comparable hotels.
The decline in China was seen across the country with key markets including Beijing, Shanghai, Guangdong and Chengdu seeing decreases. Mexico’s RevPAR decrease continued to be driven by key leisure markets — Cancun, Mexico Caribbean, and Pacific Central — which combined were down 32%. Excluding those three, RevPAR in the remainder of country was slightly down (-0.6%).
Canada, India and Spain continued to see hotel RevPAR advance with RevPAR in the latter two countries up by more than 10%. Canada was up 7% as Toronto’s RevPAR surged by 30.5% on a 21.5% ADR gain. Toronto’s hotel occupancy was also strong, achieving 95.3%. Montreal also had a solid week as RevPAR grew 14.4% on nearly equal gains in occupancy and ADR.
Cole Martin is Analytics and Insights Specialist at STR and Isaac Collazo is senior director of analytics at STR.