US Hotel Occupancy Down 1.6% YoY Amid Negative Comparisons

The US hotel industry reported a decrease in occupancy rate of 1.6% YoY in May 2025, with an occupancy rate of 61.0%. Average daily rate (ADR) decreased by 0.3% to $151.48, and revenue per available room (RevPAR) dropped by 1.9% to $92.45.

The US hotel industry experienced a notable decrease in occupancy rates in May 2025, according to the latest data from CoStar. The overall occupancy rate fell by 1.6% year-over-year (YoY), reaching 61.0% [4]. This decline was accompanied by a slight drop in average daily rate (ADR), which decreased by 0.3% to $151.48, and a more significant reduction in revenue per available room (RevPAR), which dropped by 1.9% to $92.45 [4].

The occupancy rate decrease was particularly pronounced in some key markets. For instance, Houston saw a significant drop in occupancy, falling 11.3% to 60.0%, while Atlanta experienced the largest losses in ADR, declining 6.8% to $128.06, and in RevPAR, down 13.5% to $85.59 [4]. Conversely, Detroit led the top 25 markets in year-over-year growth across all three key performance metrics, with occupancy rising by 11.4% to 70.4%, ADR increasing by 13.2% to $142.83, and RevPAR growing by 26.1% to $100.54 [4].

These fluctuations highlight the diverse impacts of economic, seasonal, and regional factors on the US 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.

References:
[1] https://www.gurufocus.com/news/2897893/quhuos-homestay-sector-reports-yoy-growth-in-occupancy-rate-during-labor-day-holiday-continuing-to-enhance-the-accommodation-experience-qh-stock-news
[2] https://www.hotelnewsresource.com/article136701.html
[3] https://finance.yahoo.com/news/travel-sector-walks-tight-rope-150953069.html
[4] https://www.asianhospitality.com/costar-u-s-hotel-metrics-slide-in-final-week-of-may/