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St. Louis led with a remarkable 19.3% increase in occupancy, reaching 76.7%. – Image Credit Unsplash
- For the week ending May 24, 2025, U.S. hotels experienced slight declines in occupancy but increases in average daily rates and revenue per available room.
- Significant regional variations were observed, with St. Louis and New York City showing strong performance gains, while Houston and New Orleans faced declines.
The U.S. hotel industry displayed mixed performance in the latest data released by CoStar for the week ending May 24, 2025. Overall, the industry saw a minor decrease in occupancy by 0.4% year-over-year, settling at 67.5%. However, there were positive movements in the average daily rate (ADR), which increased by 1.5% to $164.57, and revenue per available room (RevPAR), which rose by 1.1% to $111.02.
The Memorial Day weekend, particularly Friday and Saturday, witnessed robust demand, ranking as the third highest in historical records, only surpassed by 2022 and 2019. This surge underscores the ongoing appeal of holiday travel within the U.S. market.
Regionally, the performance varied significantly among the top 25 markets. St. Louis led with a remarkable 19.3% increase in occupancy, reaching 76.7%. New York City and San Francisco/San Mateo saw the most substantial rises in ADR and RevPAR, with New York City’s ADR climbing by 12.6% to $358.57 and San Francisco/San Mateo’s RevPAR growing by 24.3% to $169.87.
Conversely, Houston experienced the most considerable drop in occupancy, which decreased by 16.2% to 62.1%. New Orleans faced the most significant reductions in ADR and RevPAR, with decreases of 7.3% and 17.8%, respectively, bringing their figures down to $155.45 and $94.78.
These fluctuations highlight the diverse impacts of economic, seasonal, and regional factors on the U.S. hotel industry, suggesting a complex landscape for hotel operators and investors. As the summer season approaches, the industry remains watchful of trends that could influence future performance.
