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U.S. hotel occupancy declines for third month

  • Automatic
  • 25 June 2025
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This article was written by Hospitality Today. Click here to read the original article

Despite modest gains in average rates and RevPAR, May data shows a continued dip in occupancy, prompting a downgraded outlook for 2025 and 2026 amid traveler caution

Jun 25, 2025

U.S. hotel occupancy fell again in May, marking the third consecutive monthly decline, according to new data from STR. While average daily rate (ADR) and revenue per available room (RevPAR) saw slight year-over-year increases, overall demand remained under pressure. The latest figures come as economic uncertainty continues to influence travel patterns, with STR and Tourism Economics now revising their hotel performance forecasts downward for 2025 and 2026.

Key takeaways

  • Occupancy down: May U.S. hotel occupancy fell 0.7% year over year to 65.3%, continuing a downward trend.
  • ADR and RevPAR up slightly: ADR rose 0.8% to $162.72; RevPAR nudged up 0.1% to $106.30.
  • Forecast downgraded: STR and CoStar lowered their 2025–2026 outlook due to macroeconomic pressures and weak Q1 results.
  • Regional variation: Top 25 U.S. markets outperformed others in both occupancy and ADR.
  • City highlights:
    • Highest occupancy: New York City at 87.9% (down 1% YoY)
    • Lowest occupancy: New Orleans (60.1%), followed by Houston (61.4%)
  • Summer outlook: June occupancy looks stronger, but July and August may remain soft due to delayed booking behavior.

Get the full story at BTN

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