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Among the Top 25 Markets, St. Louis saw the largest occupancy increase (+11.1% to 64.5%). – Image Credit Unsplash
- For the week ending May 31, 2025, U.S. hotels experienced a downturn in occupancy, average daily rate, and revenue per available room.
- While most markets struggled, St. Louis, New York City, and Los Angeles saw significant increases in occupancy and average daily rates.
The U.S. hotel industry faced a challenging week with negative year-over-year performance metrics for the week ending May 31, 2025, as reported by CoStar, a leader in real estate market analytics. The industry saw a decline in several key performance indicators compared to the same week in 2024.
During the week of May 25-31, 2025, hotel occupancy across the U.S. fell to 61.0%, marking a 1.6% decrease from the previous year. The average daily rate (ADR) slightly dropped by 0.3% to $151.48, while revenue per available room (RevPAR) experienced a more significant decline of 1.9%, settling at $92.45.
Despite the overall downturn, some major markets showed resilience and growth. St. Louis led with an impressive 11.1% increase in occupancy, reaching 64.5%. New York City and Los Angeles reported a 5.7% rise in their average daily rates, reaching $290.35 and $189.06, respectively, indicating strong demand and pricing power in these cities.
Conversely, New Orleans and Dallas faced steep declines in RevPAR, with New Orleans dropping by 30.2% to $73.59 and Dallas by 21.5% to $67.25, highlighting areas of concern within the industry.
This mixed performance underscores the varying recovery rates and market dynamics across different regions, reflecting the complex landscape that hoteliers must navigate in the current economic environment.
