U.S. Hotel Industry Faces Year-End Decline, Tampa Emerges as Bright Spot :: Hospitality Trends

• CoStar’s data reveals a year-over-year dip in U.S. hotel industry performance for the week ending 28th December 2024.
• Among the top 25 markets, Tampa showcases a promising trend with significant increases in occupancy and RevPAR.

According to the latest data from CoStar, the U.S. hotel industry experienced a downturn in the last week of 2024, with a year-over-year decrease in occupancy, average daily rate (ADR), and revenue per available room (RevPAR). The occupancy rate slipped by 4.9% to 47.7%, while the ADR fell 1.7% to US$160.96. The RevPAR saw a more significant drop of 6.5% to US$76.83.

However, amidst the nationwide decline, Tampa emerged as a promising market. It reported a notable increase in occupancy of 16.3%, reaching 74.0%. Its RevPAR also surged by 22.6% to US$124.36, marking the only double-digit increase among the top 25 U.S. markets. Houston also showed a positive trend with the highest ADR lift of 5.6% to US$97.82.

On the other hand, Nashville and Atlanta experienced the steepest declines in RevPAR, falling to US$51.68 and US$40.05, respectively. The report signifies a tough year-end for the hotel industry, with only a few markets managing to buck the trend.