Linen Supply Services NAICS 812331

Nov 24, 2025 - Mixed Hotel Results Signal Softer Demand for Linen Services

• Linen service providers may experience the ripple effects of October’s hotel industry slowdown, with US occupancy falling to just 65.8%, its lowest level in eight months, according to Hotel News Resource. According to CoStar, this represents a 2.4% year over year decline, directly reducing demand for laundry and linen turnover across properties. While the average daily rate (ADR) rose 1.5% to $167.71, RevPAR slipped 0.9% to $110.35, signaling weaker room demand despite higher pricing. For linen suppliers, fewer occupied rooms mean lower order volumes and potential contract renegotiations, particularly in secondary markets. New York City remained the strongest performer at 89.4% occupancy (down 1.6%), while Tampa and St. Louis lagged at 62.5% and 63.1%. With occupancy trending lower nationwide, linen providers face mounting pressure to protect margins and adjust operations to align with uneven hotel demand.
• While 11 services industries reported growth in October, six industries reported a contraction, including the Other Services industry, which includes providers of laundry services, according to the latest ISM Services PMI Report. Executives in the Other Services industry reported decreases in employment, order backlogs, and inventories while reporting an increase in new orders and prices paid for materials and services. Other industries reporting contraction during the period include Arts, Entertainment, and Recreation; Management of Companies & Support Services; Finance & Insurance; Public Administration; and Construction. Industries reporting growth during the period were Accommodation & Food Services; Retail Trade; Wholesale Trade; Real Estate, Rental & Leasing; Health Care & Social Assistance; Utilities; Transportation & Warehousing; Agriculture, Forestry, Fishing & Hunting; Information; Professional, Scientific & Technical Services; and Educational Services. Overall economic activity in the services sector returned to expansion in October, registering 52.4%.

• Revenue results for health care and linen rental services remained mostly positive for Q3 compared to Q2, according to the Q3 2025 Uniform & Linen Rental Survey from the Textile Rental Services Association (TRSA) and Robert W. Baird & Co. The survey participants included executives at US linen, uniform, and facility services companies. About 45% of linen rental respondents cited rental revenue trends above expectations, with 37% in line with expectations, and 18% falling short. For uniform rental companies, 28% of respondents had revenue trending above expectations, with 44% as expected, and 28% falling short. The 12-month revenue forecast for linen rental companies was 3.2% growth, down slightly from 3.7% last quarter. The 12-month revenue forecast for uniform rental companies is growth of 3.3%, essentially unchanged from the 3.2% growth forecast last quarter.
• Softening consumer sentiment and confidence in November and October 2025 signals potential headwinds for spending. The University of Michigan’s Index of Consumer Sentiment dropped 6.2% month-over-month in November's preliminary results to 50.3, a 29.9% year-over-year decline. The Current Economic Conditions Index fell to 52.3, and the Expectations Index to 49, down 36.3% annually. Year-ahead inflation expectations rose to 4.7%, while long-run expectations declined to 3.6%, with increased uncertainty across both horizons. Meanwhile, the Conference Board’s Consumer Confidence Index edged down to 94.6 from 95.6 in October, as improved current conditions (Present Situation Index up to 129.3) were offset by weaker short-term expectations (Expectations Index down to 71.5). Inflation expectations rose to 5.9%, and over half of consumers anticipated higher interest rates. Holiday spending is projected to fall, with promotions driving purchasing decisions.