Quarterly Hotel Update, as of July 2025 (Q2)
Central Counties Tourism collects aggregated quarterly hotel data from Smith Travel Research (STR) for the available properties within our region, and each quarter, share those metrics with you.
Here is an analysis of the hotel data specifically for Quarter 2 (April, May, June) 2025 in RTO6, along with recommendations to help you grow your revenue and take action.
Analysis of RTO6 Q2 2025 Hotel Data
The second quarter of 2025 (April – June) shows a robust and mature performance for hotels in RTO6, building on the strong recovery observed in recent years. While there are slight changes in some metrics compared to peak post-pandemic surges, overall figures remain significantly above pre-pandemic levels.
- Occupancy Rate: The average hotel occupancy rate for Q2 2025 is 78.2%. Monthly figures show a positive progression through the quarter, starting at 74.9% in April, rising to 78.2% in May, and peaking at 81.7% in June. While this Q2 average is a slight decrease from Q2 2024 (79.6%) and Q2 2023 (81.3%), it remains notably higher than pre-pandemic Q2 2019 (76.8%).
- Total Revenue: Total hotel revenue for Q2 2025 is $112,805,083. Monthly revenue consistently increased from April ($34,262,262) to May ($38,294,375) and June ($40,248,446). This total represents a slight increase from Q2 2024 ($112,125,459) and is only marginally below the peak of Q2 2023 ($112,928,246). Crucially, current revenues are substantially higher than Q2 2019 ($73,437,426).
- Average Daily Rate (ADR): The average ADR for Q2 2025 is $178.54. Monthly ADR also shows a consistent upward trend within the quarter, from $172.05 in April to $178.23 in May and $185.32 in June. This metric highlights continued strong pricing power, consistently increasing year-over-year, surpassing Q2 2024 ($176.30) and Q2 2023 ($176.19).
- Revenue Per Available Room (RevPAR): The average RevPAR for Q2 2025 is $139.85. Similar to occupancy, RevPAR increased monthly from April ($128.84) to May ($139.36) and June ($151.36). While Q2 2025 RevPAR is slightly lower than Q2 2024 ($140.54) and Q2 2023 ($145.87), it remains significantly higher than pre-pandemic Q2 2019 ($105.66). The slight dip from recent peaks, despite rising ADR, suggests that the minor decrease in occupancy has a proportional impact on RevPAR.
Recommendations for Revenue Growth and Action
Given these insights, here are actionable recommendations for you as a tourism stakeholder:
- Leverage Strong ADR: The consistent increase in ADR indicates that the market is willing to pay higher prices for hotel stays. Focus on maintaining and justifying these higher rates by ensuring exceptional guest experiences, promoting unique amenities, and highlighting the value proposition of your offerings.
- Target Occupancy Growth (Especially in Shoulder Months): While overall occupancy is strong, the slight dip from 2023/2024 peaks suggests an opportunity. Pay particular attention to April and May, which show lower occupancy than June. Implement targeted marketing campaigns or special promotions for these months to entice more visitors and convert them into bookings. This could include weekend packages, mid-week corporate rates, or event-driven promotions.
- Optimize RevPAR through Strategic Marketing: The slight decrease in RevPAR despite strong ADR suggests that even a small increase in occupancy could significantly boost overall performance. Focus on filling unsold rooms strategically without heavily discounting, thereby maximizing the revenue generated per available room.
- Analyze Demand Drivers: While not directly in the sources, understanding why June’s occupancy, ADR, and RevPAR are consistently higher than April and May within Q2 is crucial. Identify specific events, holidays, or seasonal trends that drive demand in June and explore how to replicate or extend these demand-generating activities into the earlier months of the quarter.
- Highlight Value over Volume: The data suggests a stable market where higher value (ADR) is being achieved. Instead of solely chasing high occupancy at potentially lower rates, focus on strategies that attract guests who are willing to pay the higher ADR, thereby maintaining your profitability.
- Monitor Competitive Landscape: Given the slight moderation in overall occupancy and RevPAR, it’s prudent to understand if this is a market-wide trend or specific to certain segments. Regularly assess competitor pricing and offerings to ensure your pricing remains competitive while upholding your ADR.
Click on the regional hotel reports below to see the Occupancy, Revenue, Average Daily Rate and Revenue Per Available Room for:
For further assistance in identifying your target markets, please contact Tom Guerquin, Manager of Research & Development at Central Counties Tourism.
