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US hotel performance growth moderates as World Cup enters final stages

Tournament host markets outperform broader US hotel industry
Philadelphia hotels performed well during the week of July 5-11, posting an 18.3% RevPAR increase as the market was a focal point of America 250 celebrations and later in the week hosted Major League Baseball's All-Star Weekend. (Getty Images)
Philadelphia hotels performed well during the week of July 5-11, posting an 18.3% RevPAR increase as the market was a focal point of America 250 celebrations and later in the week hosted Major League Baseball's All-Star Weekend. (Getty Images)

Note: “Match-days” throughout this article refers to both the night before and the night of the match, which are the peak nights for hotel performance around the World Cup matches. “Shoulder-days” refers to all other nights.

U.S. hotel industry performance continues to outpace 2025 levels in week of July 5-11, but growth rates are beginning to normalize as the tournament nears its conclusion.

U.S. hotel revenue per available room (RevPAR) increased 5.2%, more in line with the performance gains seen in late May and early June following several weeks of elevated growth. Average daily rate (ADR) remained the primary driver, increasing 4.5%, while occupancy was 0.7 percentage points above the same week last year.

The U.S. hotel industry recorded its 13th consecutive week of growth across RevPAR, ADR and occupancy, highlighted by ADR increasing for the 19th consecutive week. Last week's gains were aided in part by an easier comparison period. RevPAR declined 3.7% during the same week in 2025, providing a favorable backdrop for year-over-year growth. Compared with the same week in 2024, RevPAR was up 1.3%.

World Cup markets

Of the 11 U.S. World Cup host markets, eight hosted a round of 16 or quarterfinal match last week. Those eight markets combined for a 10.9% increase in RevPAR, entirely driven by a 13.7% increase in ADR. While host markets continued to outperform the broader U.S. hotel industry, the 10.9% increase represented the smallest weekly RevPAR gain for World Cup host markets since the tournament began. The three host markets without a match last week combined for a more modest 3.7% increase in RevPAR, more closely aligning with performance trends across non-host markets.

Hotel performance on match days reflected the heightened stakes on the field, reaching tournament highs in both RevPAR (+42.1%) and ADR (+34.7%) growth. At the same time, shoulder-day performance weakened to its lowest level of the tournament. Four of the eight host markets last week hosted their final World Cup match, reducing the amount of tournament-related demand supporting the rest of the week. Occupancy in host markets declined by 1.8 percentage points overall, continuing a trend that has emerged during the past four weeks. On shoulder days, occupancy fell 3.7 percentage points, highlighting the continued headwind of displaced business and non-World Cup travel demand.

The divergence between match-day and shoulder-day performance was most evident in Atlanta and Seattle, the only two host markets to record weekly hotel RevPAR declines. Atlanta's 24% decline in shoulder-day RevPAR and Seattle's 18.7% decline were large enough to offset gains generated by their World Cup matches, resulting in overall RevPAR declines of roughly 10% in both markets. The weakness was also evident in business travel demand, with luxury and upper-upscale group demand declining by a combined 54% year over year across the two markets, suggesting continued displacement from World Cup-related travel.

While Atlanta and Seattle illustrate the challenges of weaker shoulder-day demand, most host markets were still able to offset those headwinds through substantial ADR gains. Miami and Kansas City led all host markets with RevPAR increases of 38% and 35%, respectively. In both cases, pricing was responsible for nearly all of the performance growth. Miami's ADR increased 37.6% with occupancy unchanged, while Kansas City's 45.3% ADR increase more than compensated for a 4.7-percentage-point decline in occupancy.

Non-host markets

Outside of the World Cup, the rest of the U.S. also saw more muted hotel performance gains compared to prior weeks, with a combined RevPAR increase of 4.1%. Unlike the previous few weeks, larger performance gains following the holiday week were more concentrated in a handful of markets.

Las Vegas was the leading market of this group, with several overlapping conferences driving a 23.9% lift in RevPAR and an 18.7% increase in ADR. Washington, D.C., retained momentum from the 250th anniversary holiday on Saturday, leading all markets in year-over-year demand growth last week with over 41,000 additional hotel rooms sold. Philadelphia was another top-performing market. Despite not hosting a World Cup match last week, hotel RevPAR increased 18.3%. As one of the focal points of the nation's 250th anniversary celebrations, Philadelphia continued to benefit from July Fourth-related travel before transitioning into MLB All-Star festivities that began over the weekend. The surrounding areas of Philadelphia and greater Pennsylvania also saw increased hotel demand due to severe weather displacement, with four Pennsylvania markets recording double-digit demand growth last week.

Class

U.S. hotel performance continues to be uplifted by the higher-end hotel classes, as luxury hotels were the only class to maintain the heightened growth rates of the previous weeks. RevPAR for luxury hotels was up 13.7% last week with ADR gains of 13.2%, while no other class exceeded 5% growth in RevPAR. If you were to exclude luxury hotels from the overall U.S. performance last week, RevPAR growth declines by 170 basis points to 3.5%, and same for ADR which would fall to 2.5% growth.

Global RevPAR on the rise

Global hotel RevPAR rose for a third consecutive week (+1.8%) on a comparable and constant USD basis excluding the U.S. The growth was again driven by ADR, which increased 3.4%. ADR has risen in all but five of the past 16 weeks whereas occupancy has fallen in all but three weeks in the same period. Like last week, global RevPAR was held back by China, the Gulf Cooperation Council (GCC), Mexico and Latin America. Excluding those four, global RevPAR was up 4.5% on ADR and a slight gain in occupancy. Global RevPAR without those four countries/regions has grown in all but two of the past 16 weeks with weekly growth averaging 4%.

RevPAR in Mexico has fallen for 52 consecutive weeks with the measure dropping by 10.5% this week. The largest RevPAR declines this week were again in the key tourist areas of the Mexican Caribbean (-28%) and Cancun (17.7%). All but three of the 14 markets saw RevPAR retreat on falling occupancy. Yucatan/Campeche and Mexico City bucked the trend as both saw RevPAR rise by more than 26%. Mexico City’s gain was driven by a World Cup match which generated a 251% RevPAR goal. Excluding the match day and the day after, the remaining days were down 5.9% on declining occupancy.

India, France and the Caribbean were the big winners this week with RevPAR rising by more than 10% in each. Canada was also up despite a 12.4% drop in Toronto, which did not have a World Cup match this week. Vancouver did with full week RevPAR rising 4.4%. Excluding the match day and the day before, RevPAR was down 2.4% on falling occupancy.

Cole Martin is Analytics and Insights Specialist at STR and Isaac Collazo is senior director of analytics at STR.

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