STR Weekly Insights: 24-30 August 2025

Analysis by Isaac Collazo and Chris Klauda

8 September 2025

STR Weekly Insights: 24-30 August 2025

All financial figures in U.S. dollar constant currency.

Highlights

U.S. RevPAR comp improved, just barely
An average Labor Day weekend caps a lower summer
New York City, Orlando and Chicago posted good weeks
Houston and Las Vegas are still dragging down the national average
Global growth continued, led by the MEA region
Spain, Italy, much of Europe showed double-digit growth.

Slight RevPAR increase after a 3-week slump

U.S. hotel RevPAR rose for the first time in three weeks, but the increase (+0.2%) was nothing to celebrate. ADR (+1.0%) pushed the slight gain, while occupancy (-0.5 ppts) was down for the 10th week in a row.

STR Weekly Insights: 24-30 August 2025

Continued negative performance in Houston and Las Vegas dragged down the national average once again. Excluding those two markets, RevPAR increased 1.0%. Two other Top 25 Markets, Denver and Washington D.C., also posted notable, double-digit RevPAR declines for the week. Those markets have seen declines for four consecutive weeks.

STR Weekly Insights: 24-30 August 2025

Bright spots in New York, Orlando and Chicago

Three markets posted RevPAR gains of more than 9%, lifted primarily by ADR.

New York City’s occupancy was the highest of all the markets as the market saw its second highest Labor Day demand ever, just 9,000 short of its record in 2019. Events benefitting the city included Lady Gaga’s Mayhem Ball Tour along as well as the annual U.S. Open Tennis tournament.
A final blast of summer leisure travel lifted Orlando. The preceding Friday, 22 August through Thursday, 28 August showed double-digit RevPAR growth in the market.
Chicago had a great Labor Day with double-digit RevPAR gains Thursday through Saturday, started by a sold-out stadium performance by Oasis on Thursday.

An average Labor Day weekend

Weekday and weekend performance, excluding Houston and Las Vegas, was mostly equal compared to last Labor Day week. The holiday weekend was slightly stronger in non-Top 25 metro areas and non-metro/rural areas. The three-day Labor Day weekend, using prelim data for Sunday, August 31, was mediocre. Room demand was the fourth highest ever but the best since 2022. Occupancy rose to 70.8% from 70.7% a year ago. ADR advanced 0.6%, leading to a RevPAR gain of 0.7%.

STR Weekly Insights: 24-30 August 2025

Lower summer

The unofficial yet appropriate definition of summer includes 101 days from the Friday before Memorial Day to the Sunday before Labor Day. Summer 2025 was sluggish at best, reflected by basically flat ADR (+0.2%) and lower room demand (-0.4%). All but the Luxury hotel class felt the summer slump with Economy and Midscale hotels seeing the greatest declines. Mediocre RevPAR comps were seen in both the Top 25 Markets (-0.4%) and the rest of the country (0.0%).

STR Weekly Insights: 24-30 August 2025

A strong summer globally for hotels outside the U.S.

Hotels outside the U.S., using a same-store comparison, experienced a strong summer with RevPAR growth in every week but one. ADR was the almost exclusive driver of the strong performance. RevPAR in the most recent week rose 6.8% with ADR increasing 4.9%, while occupancy advanced 1.3 ppts.

STR Weekly Insights: 24-30 August 2025

Over the past four weeks, the Middle East/Africa region saw the strongest RevPAR, rising 14.2%. Double-digit gains were also seen in Spain, Italy, Japan, and the rest of the Europe. Canada continued its growth streak, posting another week of RevPAR growth. France and Germany saw declines due to difficult comps to last year.

STR Weekly Insights: 24-30 August 2025

Looking ahead

Next week’s data is expected to reflect the soft performance seen all summer. The following two weeks should provide a much-needed lift as conference season picks up. These weeks will benefit from the Rosh Hashana calendar moving to the end of the month and Yom Kippur occurring into early October. Because of this shift, the last full week in September and the week into October are expected to be slow only to pick up after the holidays pass.

Markets hosting Taylor Swift’s ERAS Tour in October 2024 (Miami, New Orleans, Indianapolis, Toronto and Vancouver) are expected to show a negative comp this year. And finally, the impact of Hurricanes Helene and Milton that swept through the southeast last September and October will create difficult comps for markets in North Carolina, Georgia and Florida this year. All in all, it’s going to remain challenging.

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.

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