Overview
- Quarter to quarter, ADR slipped 0.9% to $179.96 in Q4 while RevPAR fell 9.6% to $111.87, with occupancy and demand driving the decline rather than price cuts.
- Q4 profitability compressed as GOP margin dropped 3.3 percentage points to 36% when costs failed to flex fast enough with softer revenue.
- For full-year 2025, ADR fell 2.5% to $180.92 and RevPAR declined 6.3% to $118.26, while TrevPAR decreased 8.8% to $151.34, reflecting weaker ancillary spend.
- Despite top-line pressure, full-year GOP margin improved 1.1 percentage points to 38.3% due to stricter labor discipline and tighter cost control.
- Performance split widened: Luxury and Upper Upscale held rate and ancillary gains, Economy and Midscale saw sharper RevPAR pressure, regional strength centered in the Northeast and parts of the West, budgets were missed, and the report advises tighter forecasting with real-time cost linkage in 2026.