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Among major markets, New York City led with the highest occupancy rate, albeit with a slight decrease of 1.4%, bringing it to 86.0%. – Image Credit Unsplash
- Slight Decline in Occupancy: U.S. hotels experienced a 1.3% drop in occupancy rates compared to August 2024.
- Modest Increase in Room Rates: Average daily rates saw a slight rise of 0.3%, reaching $158.93.
The U.S. hotel industry reported mixed results for August 2025, reflecting a slight dip in occupancy rates but a modest increase in average daily rates (ADR). According to data from CoStar, the occupancy rate fell to 66.1%, a 1.3% decrease from the previous year. Despite this, the ADR edged up by 0.3%, reaching $158.93, indicating some resilience in pricing strategies.
Revenue per available room (RevPAR), a key performance metric, also declined by 1.0%, settling at $105.06.
Among major markets, New York City led with the highest occupancy rate, albeit with a slight decrease of 1.4%, bringing it to 86.0%. Seattle followed with an occupancy rate of 82.2%, representing a minor 0.4% drop.
Conversely, Phoenix and Houston recorded some of the lowest occupancy rates, at 55.0% and 55.9% respectively. Houston’s figures were notably impacted by the ongoing effects of Hurricane Beryl, which had caused significant displacement demand in 2024.
Overall, the Top 25 Markets outperformed others in terms of both occupancy and ADR, suggesting that major urban centers continue to attract more travelers despite broader industry challenges.
