US Hotel Industry Reports Negative Year-over-Year Comparisons: Occupancy Rate Down 1.0%

US hotel occupancy rate decreased 1.0% YoY in the week ending August 9, with ADR down 0.6% and RevPAR down 1.6%. The 4-week average occupancy rate is tracking behind last year and the median rate for the period 2000-2024. The rate will decrease seasonally into the Fall, making this year one of the worst for occupancy over the last 25 years, excluding pandemic or recession years.

Title: U.S. Hotel Industry Faces Challenges in August 2025

The U.S. hotel industry experienced a decline in occupancy rates, average daily rates (ADR), and revenue per available room (RevPAR) during the week ending August 9, 2025. According to CoStar data, occupancy fell by 1.0% year-over-year (YoY), ADR decreased by 0.6%, and RevPAR dropped by 1.6% [1]. These figures indicate a challenging period for the industry, with the 4-week average occupancy rate tracking behind last year and the median rate for the period 2000-2024.

Among the top 25 markets, San Francisco reported the largest increases in occupancy (+12.8% to 81.5%), ADR (+8.3% to $210.29), and RevPAR (+22.2% to $171.38). In contrast, Houston recorded the steepest drop in occupancy (-27.5% to 55.3%) and RevPAR (-34.6% to $61.38), largely due to the elevated displacement demand period that followed Hurricane Beryl in 2024 [1].

Brookfield has completed a $1.93 billion refinancing of the Atlantis Paradise Island resort in The Bahamas, investing more than $260 million in the resort over the past five years. The company plans an additional $475 million in capital improvements over the next five years, including a complete renovation of The Cove starting in 2026 [1].

Hilton is debuting in the U.S. Virgin Islands with the opening of the 126-key Hampton by Hilton St. Thomas. The hotel is owned by St. Thomas-based Haven Development and managed by Hotel Equities. Hilton currently has about 50 hotels in the Caribbean [1].

The hotel construction pipeline in the Middle East reached an all-time high of 650 projects with 161,574 rooms through the second quarter, up 7% by projects and 10% by rooms year-over-year (YOY) [1]. The luxury chain scale achieved an all-time high of 196 projects/43,942 rooms.

Choice Hotels faces declining RevPAR and limited growth prospects due to economic uncertainties, reduced government and international travel, and softer leisure demand. The company's recent financial results showed a 2.9% YoY decline in RevPAR and lower full-year RevPAR guidance [2].

These developments underscore the ongoing challenges in the U.S. hotel industry, with occupancy rates and RevPAR showing significant declines. The industry will need to address these challenges to return to more stable growth.

References:
[1] https://www.hotelinvestmenttoday.com/Financials/Financing/Brookfield-s-Atlantis-refi-US-hotels-down-again-Hilton-debut-in-Virgin-Islands
[2] https://www.ainvest.com/news/choice-hotels-faces-declining-revpar-limited-growth-economic-uncertainties-2508/