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U.S. hotel occupancy dips in June as business travel remains sluggish

  • Automatic
  • 23 July 2025
  • 1 minute read
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This article was written by Hospitality Today. Click here to read the original article

Weekday travel demand continues to underperform leisure-driven weekends, reflecting a weak corporate travel environment

Jul 23, 2025

U.S. hotel occupancy declined in June for the fourth consecutive month, with business travel demand showing notable weakness compared to leisure travel. While average daily rates saw a slight increase, revenue per available room dropped, underscoring challenges in the corporate travel segment.

Key takeaways

  • Occupancy decline: U.S. hotel occupancy fell 1.7 percent year over year to 68.5 percent in June.
  • Rate changes: Average daily rates increased slightly by 0.4 percent to $162.51, while revenue per available room dropped 1.2 percent to $111.32.
  • Business travel weakness: Weekday performance, typically driven by corporate travel, consistently lagged behind weekends since Memorial Day.
  • Top markets outperforming: The top 25 U.S. markets showed higher occupancy and ADR compared to other markets.
  • City highlights: New York City led with the highest June occupancy at 88.5 percent, while New Orleans (53.8 percent) and Phoenix (59.5 percent) recorded the lowest among major markets.

Get the full story at BTN

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