STR Weekly Insights: Soft Performance for First Week of June, Weak Weekdays, and Slowing Global RevPAR

STR Weekly Insights: Soft performance in the first week of June, weak weekdays across all chain scales, and global RevPAR slowing. Japan continues its growth streak with a boost from Expo, while US bookings improve in the short-term. The next week's data will reveal the direction of the summer.

The U.S. hotel industry experienced a soft start to June 2025, with overall weak performance across all chain scales, according to STR Weekly Insights [1]. The week saw notable declines during weekdays, while the weekend performance was flat, failing to offset the earlier losses. This trend was mirrored by a significant drop in TSA screenings, suggesting a broader slowdown in travel despite a positive booking pace [1].

Globally, RevPAR growth slowed but remained positive at +3.2% [1]. Japan continues its growth streak, with a boost from EXPO 2025, which is expected to run through October. Demand in Japan rose by 4.7%, while RevPAR advanced by nearly 40% [1]. India also saw positive demand and RevPAR comps, with a 6.7% increase in demand and a 13.8% increase in RevPAR [1]. Spain was the only other country with positive demand and RevPAR comps [1].

However, other key markets such as China and France saw mixed results. In China, ADR fell by 7.4% while demand decreased by 3.5%. The majority of its markets followed this pattern, with four of the five largest markets (Shanghai, Beijing, Jiangsu, and Shandong) seeing demand decline at a faster rate than ADR [1]. In France, ADR fell across the country while demand held [1].

Looking ahead, the next week's data will provide more insight into the direction of summer travel. Economic indicators such as unemployment, business confidence, and consumer confidence reflect a stable outlook. Slowing TSA screenings could be a function of travelers shifting to car travel and slowing outbound international travel due to the falling U.S. dollar [1].

Globally, a slower summer is anticipated due to fewer blockbuster events such as the Olympics, Taylor Swift’s ERAs Tour, and EURO 2024. The falling U.S. dollar may slow the flood of Americans traveling overseas, and U.S. immigration policies could deter some foreign-born U.S. citizens from traveling abroad [1].

References:
[1] https://www.hospitalitynet.org/news/4127711.html