What's Happening?
In September 2025, the U.S. hotel industry saw a continued decline in performance, marking the seventh straight month of reduced occupancy rates. According to CoStar, a prominent provider of real estate analytics, the overall hotel occupancy in the U.S. dropped
to 63.4%, a decrease of 1.9% compared to September 2024. The average daily rate (ADR) for hotel rooms slightly dipped by 0.1% to $162.69, while revenue per available room (RevPAR) fell by 2.1% to $103.19. Despite these challenges, New York City stood out among the Top 25 Markets with the highest occupancy level at 86.6%, only a slight decrease of 0.5% from the previous year. This was largely due to high-profile events such as Fashion Week, the U.S. Open, and the UN General Assembly, which attracted numerous visitors.
Why It's Important?
Conversely, New Orleans and Houston reported some of the lowest occupancy rates, at 48.5% and 55.6% respectively. Houston's lower figures were particularly influenced by the aftermath of Hurricane Beryl in 2024, which had previously driven up demand due to displacement needs. Overall, the Top 25 Markets continued to outperform other regions in terms of both occupancy and ADR, highlighting the ongoing challenges faced by smaller markets in the current travel climate.
