Holiday demand lifts rates as traveler confidence returns
Nov 14, 2025
The US short-term rental market is closing 2025 on firmer footing, with December bookings showing the strongest rate and revenue gains of the year. Higher ADRs, rising RevPAR, and resilient demand signal a market that has stabilized after a volatile period.
Key takeaways
- Rising rates and revenue: December RevPAR is projected to increase 7% year over year, with ADR pacing 6% higher.
- Guests still willing to pay: November ADRs are also up 5%, indicating continued demand for quality and space despite shorter stays.
- Regional holiday strength: New England and Hawaii lead with RevPAR up 5%, while the Rockies and Midwest post 4% gains.
- Mixed performance elsewhere: The Southwest shows steady +3% RevPAR growth; the Southeast remains slightly negative at –1%.
- Shorter, later trips: Average December stay length has dropped 9%, and booking windows have tightened by around 5% across months.
- Operational agility required: Managers leaning on dynamic pricing, automation, and faster turnovers are best positioned to capture last-minute bookings.
- Confidence returning: Strong December pacing suggests the sector enters 2026 on stable ground, supported by traveler willingness to spend and firm pricing strategies.
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