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CoStar: U.S. hotel performance improved in third week of September

Houston saw the highest year-over-year occupancy gain, rising 10.7 percent to 69 percent

CoStar: U.S. hotel performance improved in third week of September

U.S. HOTEL PERFORMANCE improved in the third week of September compared to the previous week, with year-over-year results also remaining positive, according to CoStar. Key metrics—occupancy, RevPAR, and ADR—all saw week-over-week growth.

Occupancy rose to 68.9 percent for the week ending Sept. 21, up from 66.6 percent the previous week and 0.5 percent higher year-over-year. ADR reached $168.80, an increase from $162.05 the prior week and 2 percent higher than the same week last year. RevPAR climbed to $116.22 from $107.86, marking a 2.5 percent increase compared to the same period in 2023.


Among the top 25 markets, Houston recorded the highest year-over-year occupancy gain, rising 10.7 percent to 69 percent. Driven by Dreamforce 2024, San Francisco reported the largest increases in ADR, rising 60.9 percent to $363.09, and RevPAR, which climbed 71.6 percent to $300.36.

The steepest RevPAR decline was observed in New York City, which fell 14.5 percent to $379.90, largely due to the comparison against the week of the general debates during the United Nations General Assembly.

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Trump policies took center stage in 2025
Photo by Win McNamee/Getty Images

Trump policies took center stage in 2025

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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