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New Orleans reported the largest decrease in ADR, dropping by 11.6% to $139.37, alongside a 22.4% decline in RevPAR, which reached $75.27. – Image Credit Unsplash
- The U.S. hotel industry experienced a decrease in occupancy, average daily rate, and revenue per available room compared to the previous year.
- Houston and New Orleans were notably affected, with significant drops in occupancy and revenue.
The U.S. hotel industry reported a downturn in key performance metrics for the week ending September 20, 2025, according to CoStar’s latest data. CoStar, a prominent provider of real estate analytics, highlighted year-over-year declines in several areas.
During the period from September 14 to 20, 2025, the industry experienced a slight decrease in occupancy rates, which fell to 68.1%, representing a 1.1% decline from the same week in 2024. The average daily rate (ADR) also experienced a minor dip, decreasing by 0.3% to $168.98. Revenue per available room (RevPAR) showed a more pronounced decline of 1.4%, settling at $115.12.
Among major U.S. markets, Houston experienced the largest drop in occupancy, declining by 12.3% to 60.5%. The city also experienced a significant decline in RevPAR, which decreased by 20.1% to $73.89.
New Orleans reported the largest decrease in ADR, dropping by 11.6% to $139.37, alongside a 22.4% decline in RevPAR, which reached $75.27.
Overall, 17 of the Top 25 Markets recorded declines in occupancy, signaling a challenging period for the hotel industry as it navigates these fluctuations.
