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Chicago reported the largest drop in ADR (-22.3% to US$167.40) and the second-steepest decrease in RevPAR (-19.9% to US$125.14), due to a comparison against the Democratic National Convention in 2024. – Image Credit Unsplash
- The U.S. hotel industry experienced a downturn in key performance metrics for the week ending August 23, 2025, when compared to the same period in 2024.
- Houston and Chicago were notably affected, with significant drops in occupancy, average daily rate, and revenue per available room.
The U.S. hotel industry reported a decline in performance metrics for the week ending August 23, 2025, according to the latest data from CoStar, a prominent provider of real estate analytics. The industry saw negative year-over-year comparisons across occupancy, average daily rate (ADR), and revenue per available room (RevPAR).
During the week of August 17-23, 2025, the hotel occupancy rate fell to 65.4%, a 1.1% decrease from the same week in 2024. The average daily rate slightly dipped by 0.2% to $155.09, and RevPAR decreased by 1.3% to $101.38.
Houston experienced the most significant declines among the top 25 markets, with occupancy dropping by 29.3% to 53.7% and RevPAR plummeting by 38.1% to $58.43. These decreases are attributed to the high demand period following Hurricane Beryl in 2024, which had previously boosted hotel bookings.
Chicago also faced substantial challenges, recording the largest drop in ADR, which fell by 22.3% to $167.40, and the second-largest decline in RevPAR, down 19.9% to $125.14. This decline is linked to the comparison with the previous year’s Democratic National Convention, which had seen a significant increase in hotel demand.
As the industry navigates these challenging comparisons, stakeholders are closely monitoring market trends and adjusting their strategies to enhance performance in the coming months.
