CoStar: U.S. hotel performance improves in May

New York City led in all three key performance metrics among the top 25 markets

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Occupancy rose to 65.7 percent in May, reflecting a 1.5 percent increase from May 2023, according to CoStar. ADR increased to $160.40, a 2.4 percent rise from 2023. RevPAR reached $105.46, marking a 4 percent increase from the same month of the previous year.

THE U.S. HOTEL industry showed improved performance in May compared to the same month last year, according to CoStar. All three performance metrics—occupancy, ADR, and RevPAR—increased year-over-year. The top 25 markets reported higher occupancy and ADR than all other markets.

Occupancy increased to 65.7 percent in May, up from 65.2 percent in April, and increased by 1.5 percent compared to May 2023. ADR climbed to $160.40 from $157.31 the previous month, a 2.4 percent rise from 2023. RevPAR reached $105.46, up from $102.51 the preceding month, reflecting a 4 percent increase from May of the previous year.

Among the top 25 markets, New York City led in all three key performance metrics: occupancy rose 5.8 percent to 88.9 percent, ADR increased 6.3 percent to $339.25, and RevPAR climbed 12.5 percent to $301.57. Markets with the lowest occupancy for the month included Detroit at 46.1 percent and Chicago at 49.4 percent.

Meanwhile, U.S. hotel performance improved in the second week of June compared to the previous week, showing mixed year-over-year results. All key metrics, including occupancy, RevPAR, and ADR, increased compared to the prior week.