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New Orleans faced the largest decreases in both ADR and RevPAR, with rates falling by 35.3% and 41.9%, respectively. – Image Credit Unsplash
- For the week ending October 25, 2025 U.S. hotels experienced a notable decrease in key performance metrics, with occupancy dropping by 3.6% and revenue per available room (RevPAR) declining by 5.3% compared to the previous year.
- Major markets like Tampa and New Orleans saw significant downturns, influenced by past events such as Hurricane Milton and the Taylor Swift Eras Tour.
The U.S. hotel industry is facing a challenging period as recent data from CoStar reveals a downturn in performance metrics for the week ending October 25, 2025. CoStar, a prominent provider of real estate analytics, reported that the industry saw a year-over-year decline in occupancy, average daily rate (ADR), and revenue per available room (RevPAR).
During this week, hotel occupancy across the U.S. fell to 66.6%, marking a 3.6% decrease from the same period in 2024. The average daily rate also saw a slight dip, down 1.7% to $166.36, while RevPAR dropped significantly by 5.3% to $110.78.
Among the Top 25 Markets, Tampa experienced the most severe occupancy drop, plunging by 24.2% to 63.7%. This decline is attributed to the aftermath of Hurricane Milton in 2024, which had initially boosted demand due to displacement but has since tapered off.
New Orleans faced the largest decreases in both ADR and RevPAR, with rates falling by 35.3% and 41.9%, respectively. This downturn is largely due to a tough comparison against the previous year’s boost from Taylor Swift’s Eras Tour, which had drawn significant crowds to the city.
Overall, 21 out of the 25 major markets reported declines in occupancy, highlighting the widespread nature of the industry’s current challenges. As the hotel sector navigates these challenges, stakeholders are closely monitoring market trends and exploring potential recovery strategies.
