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CoStar: Rosh Hashanah weakens hotel performance in early October

Tampa’s performance was bolstered by displacement demand from Hurricane Helene

CoStar: Rosh Hashanah weakens hotel performance in early October

U.S. HOTEL PERFORMANCE declined in the first week of October compared to the previous week due to Rosh Hashanah, according to CoStar. Year-over-year comparisons also decreased, with key metrics—occupancy, RevPAR, and ADR—all falling from the prior week.

Occupancy fell to 65.6 percent for the week ending Oct. 5, down from 69.4 percent the previous week, reflecting a 3.4 percent year-over-year decrease. ADR decreased to $156.25 from $159.63 the prior week, indicating a 4.4 percent decline compared to last year. RevPAR dropped to $102.44, down from $110.84 the previous week, marking a 7.7 percent decrease compared to the same period in 2023.


Among the top 25 markets, Tampa saw the highest year-over-year occupancy increase at 81.3 percent, up 24.1 percent, while RevPAR rose 22.1 percent to $125.39. As is common after natural disasters, the market’s hotel performance was boosted by displacement demand from Hurricane Helene.

Las Vegas and Chicago saw the steepest RevPAR declines, falling 25.9 percent to $118.51 and 25.8 percent to $115.05, respectively.

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Photo by Win McNamee/Getty Images

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Summary:

  • Policy shifts and trade tensions shaped the U.S. hospitality industry.
  • A congressional deadlock triggered a federal shutdown from Oct. 1 to Nov. 12.
  • Visa limitations and the immigration crackdown dampened international travel.

THE U.S. HOSPITALITY industry navigated a year of policy shifts, leadership changes, trade tensions and reflection. From Washington’s decisions affecting travel and tourism to industry gatherings and the loss of influential figures, these stories dominated conversation and shaped the sector.

Policy uncertainty took center stage as Washington ground to a halt. A congressional deadlock over healthcare subsidies and spending priorities triggered a federal government shutdown that began on Oct. 1 and lasted until Nov. 12. The U.S. Travel Association warned the shutdown could cost the travel economy up to $1 billion per week, citing disruptions at federal agencies and the Transportation Security Administration. Industry leaders said prolonged gridlock would further strain hotels already facing rising costs and workforce challenges.

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