U.S. Hotel Industry Marks Positive Start to 2025, CoStar Reports

• The U.S. hotel industry reported a positive start to 2025 with increased occupancy and revenue rates.
• Among the top 25 markets, Tampa showed the most significant occupancy rise, while New York City reported the highest boosts in average daily rate (ADR) and revenue per available room (RevPAR).

The first week of 2025 saw a positive start for the U.S. hotel industry, with year-over-year comparisons showing a promising rise, according to CoStar‘s latest data up to January 4th.

From December 29th, 2024, through January 4th, 2025, the occupancy rate for U.S. hotels was 48.3%, which represents a 2.9% increase from the same period in previous years. The average daily rate (ADR) also saw an 11.7% increase, reaching US$168.90. The revenue per available room (RevPAR) experienced a significant boost, rising by 14.9% to US$81.53.

Looking at the top 25 markets, Tampa stood out with a remarkable 29.7% increase in occupancy, reaching 77.5%. New York City, meanwhile, led the pack with the highest increases in ADR and RevPAR, soaring by 30.7% to US$340.79 and 48.4% to US$283.03, respectively.

However, not all markets enjoyed such a fruitful start. St. Louis and Seattle suffered the steepest declines in RevPAR, falling by 26.0% to US$36.02 and 18.4% to US$54.23, respectively. Despite these minor setbacks, the overall outlook for the U.S. hotel industry remains optimistic as the new year unfolds.