- U.S. hotel occupancy slightly decreased by 0.7% in May 2025 compared to the previous year, settling at 65.3%.
- The average daily rate (ADR) increased modestly by 0.8% to $162.72, while revenue per available room (RevPAR) edged up by 0.1% to $106.30.
According to data from CoStar, in May 2025, the U.S. hotel industry experienced minor changes in performance metrics year over year. The occupancy rate across the country slightly declined to 65.3%, a decrease of 0.7% from May 2024. Despite the slight drop in occupancy, the average daily rate (ADR) for hotels increased to $162.72, marking a 0.8% rise. Revenue per available room (RevPAR) also saw a minimal increase of 0.1%, reaching $106.30.
Among the Top 25 Markets, New York City reported the highest occupancy level, although it decreased by 1.0% to 87.9%. On the other end, New Orleans and Houston recorded the lowest occupancy rates at 60.1% and 61.4%, respectively.
The data further highlighted that the Top 25 Markets generally outperformed other markets in terms of occupancy and ADR.
