What's Happening?
The U.S. hotel industry experienced mixed year-over-year performance for the week ending October 11, 2025, according to CoStar's latest data. Occupancy rates decreased by 1.9% to 69.1%, while the average daily rate (ADR) increased by 2.6% to $171.88.
Revenue per available room (RevPAR) saw a slight increase of 0.6% to $118.75. San Francisco led the Top 25 Markets with the highest occupancy and RevPAR increases, attributed to Fleet Week. New York City recorded the largest ADR increase, surpassing $400. Conversely, Las Vegas and New Orleans experienced significant declines in RevPAR.
Why It's Important?
These results highlight the ongoing volatility in the U.S. hotel industry, reflecting broader economic and travel trends. The increase in ADR suggests that hotels are managing to maintain pricing power despite occupancy challenges. Markets like San Francisco and New York City benefit from specific events and attractions, indicating the importance of local factors in driving hotel performance. The declines in Las Vegas and New Orleans may signal regional economic challenges or shifts in travel patterns, impacting local economies reliant on tourism.
