July 2025 U.s. Hotel Market Decline: New York, Los Angeles, Chicago, San Francisco See Growth Amidst National Slowdown

Published on August 29, 2025

The U.S. edifice manufacture knowledgeable a flimsy downturn successful its capacity successful July 2025, according to caller information from CoStar, a salient supplier of existent property analytics. While immoderate cardinal indicators saw insignificant declines, nan wide edifice marketplace continues to show resilience, pinch New York City maintaining its beardown beingness successful nan rankings.

Decline successful Hotel Occupancy Rates

In July 2025, nan mean occupancy complaint for U.S. hotels fell to 68.2%, reflecting a 1% diminution compared to nan aforesaid play successful 2024. This driblet suggests a flimsy cooling successful request for edifice rooms crossed nan country. However, contempt this decrease, immoderate cities and regions managed to outperform others, proving that definite areas are much robust successful nan look of a slower market.

Key Market Highlights:

• New York City stood retired among nan Top 25 Markets pinch nan highest occupancy complaint of 85.2%. Although this fig represented a 1.1% alteration from July 2024, nan metropolis continued to predominate successful position of edifice bookings.
• New Orleans and Phoenix, connected nan different hand, recorded nan lowest occupancy rates, pinch figures of 53.9% and 55.3%, respectively.

These contrasting trends stress nan disparity successful capacity crossed nan country, pinch large, established cities for illustration New York City maintaining beardown demand, while others struggle to support up.

Stable Average Daily Rates Despite Revenue Drop

The mean regular complaint (ADR) for U.S. hotels successful July 2025 stood astatine $161.90, reflecting a insignificant diminution of conscionable 0.1%. While this alteration is negligible, it indicates that nan value maturation knowledgeable successful nan past twelvemonth has slowed down. Despite nan mini dip successful ADR, it remains an important metric successful knowing nan industry’s pricing trends.

However, a much important driblet occurred successful Revenue Per Available Room (RevPAR), which fell by 1.1% to $110.37. This metric is simply a important parameter of profitability for hotels, and nan diminution suggests that while hotels whitethorn still beryllium charging akin rates, nan request for rooms is not arsenic beardown arsenic it was previously, affecting wide revenue.

U.S. Hotel Market Outlook for nan Rest of 2025

Despite nan caller slowdown, nan U.S. edifice manufacture shows signs of resilience. The Top 25 Markets, successful particular, person proven their stability, continuing to outperform smaller and mid-tier markets. These markets see cardinal cities specified arsenic Los Angeles, Chicago, and San Francisco, which proceed to pull some business and leisure travelers.

The nationalist edifice industry’s capacity is apt to beryllium influenced by respective factors successful nan coming months, including economical conditions, recreation patterns, and user preferences. While challenges persist, nan market’s resilience successful awesome metropolitan areas points to a imaginable rebound arsenic nan twelvemonth progresses.

Other Key Insights:

• Phoenix and New Orleans whitethorn request to instrumentality strategies to boost occupancy rates, specified arsenic targeted trading campaigns aliases discounts, successful bid to compete pinch higher-performing markets.
• New York City’s dominance remains significant, pinch its occupancy rates continuing to beryllium nan highest among nan nation’s apical markets. The city’s tourism assemblage shows beardown growth, supported by ongoing events, Broadway shows, and its position arsenic a world business hub.
• Overall, U.S. edifice operators will request to accommodate to fluctuating request and pricing pressures to support profitability successful an evolving marketplace landscape.

Factors Impacting nan U.S. Hotel Industry

Several factors are affecting nan edifice industry’s capacity crossed nan country:

• Economic conditions: Economic maturation and user spending straight power recreation habits and edifice bookings. Any slowdown successful economical activity tin person a ripple effect connected nan tourism industry.
• Travel trends: Increasing numbers of travelers are opting for replacement accommodations, specified arsenic short-term rentals, which could beryllium impacting edifice occupancy rates.
• Changing request patterns: Certain regions aliases sectors, for illustration business travel, whitethorn beryllium experiencing a slowdown owed to distant activity trends. Meanwhile, leisure recreation whitethorn up and down depending connected seasonality.

What Lies Ahead

Looking ahead, edifice operators will beryllium intimately monitoring these trends and adjusting their strategies to accommodate shifts successful nan market. Ensuring competitory rates, effective marketing, and superior impermanent experiences will beryllium basal for hotels hoping to support their position successful nan market.