Labor Day Calendar Shift Pushes U.S. Hotel Performance Lower :: Hospitality Trends

According to CoStar’s latest data, the U.S. hotel industry recorded weaker year-over-year results for the week of September 6-12, 2026, ending a 21-week run of performance growth as the Labor Day calendar shift affected comparisons with the same period in 2025.

National occupancy fell 4.6% to 62.3%, while average daily rate declined 1.7% to US$160.57. Revenue per available room fell 6.2% to US$100.08.

The declines were concentrated from Monday through Wednesday. The comparable week in 2025 did not include the Labor Day holiday.

Among the Top 25 U.S. hotel markets, New York City recorded the largest gains across the three key metrics. Occupancy rose 4.1% to 91.8%, average daily rate increased 7.1% to US$435.43 and revenue per available room climbed 11.5% to US$399.60.

Las Vegas recorded the steepest declines in average daily rate and revenue per available room. Its average daily rate fell 20.2% to US$149.68, while revenue per available room dropped 32.8% to US$97.55. Minneapolis recorded the largest occupancy decline, down 17% to 57.8%.