January hotel performance is rarely smooth, but the week of January 18–24 delivered a sharper test than expected. While the MLK holiday historically brings softer results, this year’s performance was further complicated by widespread winter disruptions that weighed heavily on weekend travel. At first glance, the numbers appear discouraging. A deeper look reveals a more measured story – one where weekday demand held firm, pricing discipline largely remained intact, and most U.S. markets continued to perform.
January Hotel Performance Faced an Unusual Set of Pressures
As anticipated based on historical trends, U.S. hotel revenue per available room declined 1.8% during the MLK holiday week. This type of decline is typical for mid-January, when travel patterns naturally slow across both leisure and business segments. What made this year’s decline more pronounced was the added layer of winter-related travel disruption, which pushed performance below what history alone would suggest.
The impact was concentrated around the weekend. Friday and Saturday RevPAR declined 6.2%, driven primarily by falling occupancy rather than pricing pressure. As a result, the post-MLK weekend became the weakest for this period since 2018, excluding 2020.
Despite the headline decline, the remainder of the week offered important context. From Sunday through Thursday, RevPAR was flat year over year—an improvement compared to the same MLK week in each of the prior two years. While one week does not define a trend, this stabilization reinforces why January hotel performance should be evaluated beyond a single data point.
Weekend Volatility Masked Stronger Weekday Hotel Demand
Weekend performance reflected the most visible impact of disruption. Occupancy fell sharply, pulling down RevPAR and skewing weekly averages. However, weekday results told a more constructive story. From Sunday through Thursday, occupancy increased by 0.9 percentage points, helping stabilize overall demand.
Once distorted results from a small number of large markets were excluded, weekday RevPAR across the U.S. increased 3.2%. This outperformed the same MLK holiday week in both prior two years, suggesting that underlying weekday demand remains resilient.
For owners and lenders, this distinction is critical. Weekend volatility—especially when driven by exogenous events—can recover quickly. Weekday demand, by contrast, reflects the health of core business, government, and commercial travel. In this case, weekday trends suggest that the foundation of January hotel performance remains intact.
Pricing Power Held Despite Demand Pressure
One of the more encouraging signals during the week was the industry’s ability to maintain pricing discipline. Despite a 3.9-percentage-point decline in weekend occupancy, average daily rate increased by 0.6%. Operators largely avoided panic discounting, choosing instead to preserve rate integrity during a short-term demand shock.
Weekday pricing showed more flexibility. Average daily rate declined 1.6% from Sunday through Thursday, marking the largest MLK-week weekday ADR decrease since 2009, excluding 2020. However, this decline coincided with higher occupancy, indicating that rate adjustments were tactical rather than reactive.
For the full week, ADR declined 1% while demand slipped just 0.2%. This balance suggests that operators remain confident in near-term demand and are making deliberate pricing decisions. In the context of January hotel performance, this behavior reflects caution—not distress.
Most U.S. Hotel Markets Continued to Perform
National averages obscure the level of variation occurring at the market level. While several large markets experienced sharp declines, most U.S. hotel markets continued to post positive results.
Across 110 markets, full-week RevPAR increased by 5.4%. Growth was balanced, with occupancy rising by 1.5 percentage points and ADR increasing by 2.5%. This combination reflects genuine operating strength rather than inflation-driven gains.
Weekday results were particularly encouraging. Forty-seven markets posted double-digit weekday RevPAR growth, including several secondary and tertiary markets where RevPAR increases exceeded 30%. These results highlight why market-level analysis is essential when interpreting January hotel performance.
Chain Scale Performance Needs Proper Context
On the surface, chain-scale results appeared soft, with weekly RevPAR declines ranging from 0.4% in upscale hotels to 5.4% in economy properties. Viewed in isolation, these figures suggest broad-based weakness across segments.
Weekday Results Change the Narrative
When focusing specifically on weekday performance and excluding distorted markets, a different story emerges. Luxury hotels posted an 8.5% weekday RevPAR increase, while upper-upscale and upscale hotels recorded gains of 4% or more. Midscale and economy hotels lagged at first glance, but once impacted markets were excluded, midscale hotels posted a 4.1% weekday RevPAR increase, and economy hotels turned slightly positive.
This shift underscores the importance of context when evaluating segment-level January hotel performance and planning for 2026.
Group Demand Is Re-Emerging Unevenly
Group demand remained volatile during the week, particularly over the weekend, where disruptions led to sharp declines. Weekday group demand also dipped slightly among luxury and upper-upscale hotels.
Signs of Recovery in Key Markets
Outside of a few large markets, weekday group demand in the top 25 markets increased 6.5%. Detroit, New York, New Orleans, and San Francisco were among the markets posting double-digit weekday group gains, along with six other top 25 markets.
This recovery appears to be supported by easier year-over-year comparisons. Many meeting planners avoided this week last year due to the presidential inauguration, creating softer comps that amplified this year’s gains. While part of the improvement is calendar-driven, the rebound still signals that group demand is re-engaging in several major markets.
These results reinforce a broader theme seen throughout January, hotel performance: while weekend volatility weighed headline numbers, weekday fundamentals—particularly in larger markets—remain resilient and are beginning to show selective improvement.
What January Hotel Performance Signals Going Forward
Looking ahead, demand typically softens during the final week of January, and additional short-term volatility is expected as winter disruptions continue to ripple through travel patterns. Even so, month-to-date RevPAR through January 24 was still up 1.3%, though that figure is expected to moderate as the month closes.
Ultimately, January hotel performance this year was uneven, weather-impacted, and noisy—but not fundamentally weak. With weekday demand held, pricing discipline remained largely intact, and most markets continued to grow beneath the surface.
If you’d like to discuss what these trends mean for your hotel, portfolio, or target market, our team is here to help. Contact us today to start a conversation about navigating volatility and positioning your assets for long-term success.