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New York City stood out with the highest occupancy rate among the Top 25 Markets, reaching 85.2% – Image Credit Hilton
- U.S. hotel occupancy sees a slight dip, with New York City maintaining the highest levels.
- Average daily rates remain stable, but revenue per room experiences a minor decrease.
The U.S. hotel industry experienced a modest decline in performance during July 2025, as reported by CoStar, a leading provider of real estate market analytics. Compared to the previous year, the industry saw a slight drop in key performance metrics.
The average daily rate (ADR) for hotels remained relatively stable at $161.90, showing only a minimal decrease of 0.1%. However, revenue per available room (RevPAR) declined by 1.1%, settling at $110.37.
Occupancy rates across the country averaged 68.2%, marking a 1.0% decrease from July 2024. Despite this overall decline, New York City stood out with the highest occupancy rate among the Top 25 Markets, reaching 85.2%, although this was still a 1.1% decrease from the previous year.
In contrast, markets like New Orleans and Phoenix recorded the lowest occupancy rates for the month, at 53.9% and 55.3% respectively.
Despite the overall downturn, the Top 25 Markets continued to outperform other areas in terms of occupancy and ADR, highlighting their resilience in a challenging market environment.
