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CoStar: U.S. hotel performance improves in February

Las Vegas ADR rose 61.9 percent to $301.35, with RevPAR surging 69.9 percent to $247.44

CoStar: U.S. hotel performance improves in February

THE U.S. HOTEL industry experienced improved performance in February compared to the previous year, according to CoStar. Despite a slight decrease in occupancy, both ADR and RevPAR showed notable increases compared to the same period last year. The top 25 markets exhibited higher occupancy and ADR compared to all other markets.

Occupancy rose to 58.9 percent in February from 51.9 percent in January, but declined by 1.8 percent compared to February 2023. ADR increased to $158.23 from $146.33 in the previous month, showing a 3.9 percent rise from 2023. RevPAR reached $93.19, compared to $75.99 in the preceding month, reflecting a 2 percent rise from February of the preceding year.


Among the top 25 markets, Oahu Island saw the highest occupancy level, up 84 percent and a 6.6 percent increase year over year. Boosted by Super Bowl LVIII, Las Vegas reported the highest ADR, soaring by 61.9 percent to $301.35, and RevPAR surged by 69.9 percent to $247.44. Markets with the lowest occupancy for the month included Minneapolis, up by 46.1 percent, and Chicago, which rose by 49.4 percent.

Meanwhile, U.S. hotel performance rose in the second week of March compared to the previous week but declined year-over-year. Key metrics, including occupancy, ADR, and RevPAR, all saw increases compared to the prior week.

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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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