All financial figures in U.S. dollar constant currency.
Highlights
- Rosh Hashanah calendar shift further softens U.S. RevPAR comp
- U.S. Top 25 Markets impacted the most, especially Group hotels
- Long Island (Ryder Cup) saw the nation’s highest lift
- September U.S. RevPAR trending toward moderately negative territory
- Global RevPAR also softened but remained positive
- Canada reported an off week
- Most markets down in China ahead of Golden Week
Early in the week Rosh Hashanah observance drops occupancy
U.S. revenue per available room (RevPAR) fell 6.6% in the week ending 27 September 2025. The decrease was mostly due to declining occupancy, down 2.8 percentage points (ppts) but was worsened by a 2.5% retreat in average daily rate (ADR). Occupancy has declined for the past 14 consecutive weeks, the longest such streak since the end of the pandemic. Further, since April, weekly occupancy has only increased twice.
The softness in this week’s results was anticipated due to the movement of the Rosh Hashanah observance that began on Monday and ended Wednesday. Not surprisingly, the largest RevPAR declines were seen on Monday (-12.4%) and Tuesday (-11.4%), with a lesser decrease on Wednesday (-8.4%). The declines, however, continued through the weekend (-1.4%).
The only good news is that ADR comps turned positive over the weekend, albeit not by much (+0.4%). ADR, since May, has increased in 14 of the past 22 weekends at an average of +1.2%. This most recent weekend’s gain was second lowest since May.
Rosh Hashanah demand fourth highest
Since 2000, Rosh Hashanah has started on a Monday just four times: 2005, 2008, 2021, and 2025. This year’s RevPAR results over the three days of the observance were like what we saw in 2008 during the Great Recession (-14.6% then and -10.7% now). But, unlike 2008, the country is not in an economic recession, so this is different.
Looking at all the Rosh Hashanah results regardless of starting day of the week, this year’s three-day result resembled 2019 (-10.1%), which began on a Sunday. This year’s absolute demand (11.1 million) was the fourth highest during the three days behind 2023 (11.2 million), 2024 (11.5 million) and 2017 (11.7 million). In 2023, the observance began on a Friday, while in 2017 and 2024, it started on Wednesday.
Top 25 Markets fell the most, particularly in group hotels
Most of the observance’s impact was in the Top 25 Markets where weekly RevPAR fell 11.3% versus 2.3% elsewhere. That disparity is because of the slowing in business and group travel during the observance. RevPAR for Luxury and Upper Upscale class hotels in the Top 25 Markets dropped by 11.9% due to a 26% decrease in group demand. Total U.S. group demand was down 19.4% for the full week and by more than 25% during the three-day observance period.
Eleven of the Top 25 Markets saw weekly RevPAR decrease by more than 13%. The outliers were St. Louis (+11.6%) and New York City (+6.6%), the latter of which benefited from the U.N. General Assembly that drove a 23% ADR gain Thursday through Saturday. Occupancy was also up on those days, and while the full week was down, the city held on to the nation’s highest occupancy (91.8%) for a fifth consecutive week.
Long Island saw the nation’s largest RevPAR gain (+76.4%) on a 68.1% ADR increase due to the 45th Ryder Cup. Georgia North was a distant second as RevPAR advanced by 40.8% on ADR (+43.8%) because of the Alabama-Georgia football game.
RevPAR was down for all hotel types ranging from -7.7% in Luxury to -9.0% in Upper Upscale. This was the first week among the past 22 that Economy did not have the largest RevPAR decrease.
Global RevPAR still climbing – but a bit slower
Global same-store RevPAR growth, excluding the U.S., slowed to +2.6% from +5.6% a week prior. Occupancy comps were negative from Sunday through Thursday with ADR generally holding steading and rising by 3.6% for the entire week.
Moderate RevPAR declines were registered in China, France, Germany, and India via falling occupancy. Italy, Spain, and Japan saw strong weekly same-store RevPAR gains with Mexico and the Middle East/Africa not far behind.
Canada also had an off week as same-store RevPAR declined 0.9%. On a total basis (all hotels), Canadian RevPAR was up slightly (+1.2%), but still weaker than what had been seen most of the year. The weakness was most evident in the larger markets (Alberta, Montreal, Toronto, Quebec, and Vancouver) where RevPAR was flat to down for the week.
China same-store RevPAR dropped 5% on falling occupancy. Nearly all markets saw a drop in RevPAR except Changsha, Chongqing, Hangzhou, Shanghai and several others. The four markets listed saw RevPAR increase by 5% or more. The weekly decline is likely due to the upcoming Mid-Autumn Festival and Golden Week (1-8 October).
Paris (-14.2%) was responsible for the same-store RevPAR decrease in France. Without the capital, RevPAR in the country was up 10.1% with double-digit growth in the markets of Bretagne, Hauts-de-France, and Provence-Alpes-CDA.
In Germany, Berlin, Dusseldorf, Hamburg, and Stuttgart all saw same-store RevPAR decline by more than 12% with Berlin down 32.5%. Changes in conference calendars drove the decreases in these markets.
September U.S. RevPAR trending toward moderately negative percentage change
As anticipated, the shift in the Rosh Hashanah observance to the beginning of the week tanked year-over-year comps. However, the weekend didn’t recover and showed the same RevPAR malaise seen throughout the month. Because of that, we now expect September U.S. RevPAR to be down by more than 2%. On a day-matched basis, month-to-date RevPAR is down 2.8%. Even if the last three days of the month see demand rise by 1% and ADR by 2.7%, the month will still register a RevPAR decrease of more than 2%. October is expected to be better given that it is relatively free of calendar shifts and conducive for groups, meetings and business travel, but we’ll have to wait and see.
About CoStar Group, Inc.
CoStar Group (NASDAQ: CSGP) is a leading provider of online real estate marketplaces, information, and analytics in the property markets. Founded in 1987, CoStar Group conducts expansive, ongoing research to produce and maintain the largest and most comprehensive database of real estate information. CoStar is the global leader in commercial real estate information, analytics, and news, enabling clients to analyze, interpret and gain unmatched insight on property values, market conditions and availabilities. Apartments.com is the leading online marketplace for renters seeking great apartment homes, providing property managers and owners a proven platform for marketing their properties. LoopNet is the most heavily trafficked online commercial real estate marketplace with thirteen million average monthly global unique visitors. STR provides premium data benchmarking, analytics, and marketplace insights for the global hospitality industry. Ten-X offers a leading platform for conducting commercial real estate online auctions and negotiated bids. Homes.com is the fastest growing online residential marketplace that connects agents, buyers, and sellers. OnTheMarket is a leading residential property portal in the United Kingdom. BureauxLocaux is one of the largest specialized property portals for buying and leasing commercial real estate in France. Business Immo is France’s leading commercial real estate news service. Thomas Daily is Germany’s largest online data pool in the real estate industry. Belbex is the premier source of commercial space available to let and for sale in Spain. CoStar Group’s websites attracted over 163 million average monthly unique visitors in the third quarter of 2024. Headquartered in Washington, DC, CoStar Group maintains offices throughout the U.S., Europe, Canada, and Asia. From time to time, we plan to utilize our corporate website, CoStarGroup.com, as a channel of distribution for material company information. For more information, visit CoStarGroup.com.
This news release includes “forward-looking statements” including, without limitation, statements regarding CoStar’s expectations or beliefs regarding the future. These statements are based upon current beliefs and are subject to many risks and uncertainties that could cause actual results to differ materially from these statements. The following factors, among others, could cause or contribute to such differences: the risk that future media events will not sustain an increase in future occupancy rates. More information about potential factors that could cause results to differ materially from those anticipated in the forward-looking statements include, but are not limited to, those stated in CoStar’s filings from time to time with the Securities and Exchange Commission, including in CoStar’s Annual Report on Form 10-K for the year ended December 31, 2023 and Forms 10-Q for the quarterly periods ended March 31, 2024, June 30, 2024, and September 30, 2023, each of which is filed with the SEC, including in the “Risk Factors” section of those filings, as well as CoStar’s other filings with the SEC available at the SEC’s website (www.sec.gov). All forward-looking statements are based on information available to CoStar on the date hereof, and CoStar assumes no obligation to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise.
