Top markets outperform as national occupancy and revenue inch upward, with Tampa leading the pack
Mar 24, 2025
The U.S. hotel industry showed mixed results in February 2025, with slight improvements in key performance metrics compared to the same month last year. According to data from CoStar, a leading real estate analytics provider, national averages for occupancy, average daily rate (ADR), and revenue per available room (RevPAR) all edged upward. However, performance varied widely across markets, with notable disparities between top-performing and lagging cities.
Key takeaways
Overall performance:
- Occupancy rose slightly to 59.1%, a 0.5% increase from February 2024.
- ADR increased by 1.4% to $159.39.
- RevPAR saw a 1.9% boost to $94.24.
Top market performer:
- Tampa led the Top 25 Markets with the highest occupancy at 86.4%, a 9.2% year-over-year jump.
Lowest occupancy markets:
- Minneapolis recorded the lowest occupancy at 49.5%, followed closely by St. Louis at 50.7%.
Top 25 vs. other markets:
- The Top 25 Markets outperformed other regions in both occupancy and ADR, continuing to demonstrate stronger demand in major metro areas.
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