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CoStar: U.S. hotel performance varied in third week of November

Boston led top 25 markets in occupancy gains over last year

CoStar: U.S. hotel performance varied in third week of November

U.S. HOTEL PERFORMANCE exhibited mixed year-over-year comparisons in the third week of November, according to CoStar. Moreover, both occupancy and RevPAR declined compared to the previous week.

Occupancy dropped to 62.4 percent for the week ending Nov. 18, down from the previous week's 64.8 percent, marking a year-over-year decrease of 0.6 percent. ADR saw a slight increase to $156.47, compared to the previous week's $156.01, demonstrating a significant 7 percent uptick from the previous year. Despite a decline to $97.61 in RevPAR compared to the previous week's $101.13, there was a noteworthy 6.3 percent rise from the corresponding period in 2022.


Among the top 25 markets, Boston led with the largest year-over-year occupancy gain, surging by 11.0 percent to reach 77.2 percent.

Boosted by the Formula 1 Las Vegas Grand Prix, Las Vegas recorded significant spikes in ADR, rising by 81.9 percent to $350.57, and RevPAR, increasing by 58.9 percent to $249.29. However, despite the event, the market witnessed the sharpest occupancy decline, dropping by 12.7 percent to 71.1 percent.

Tampa experienced the steepest RevPAR decline, falling by 10.4 percent to $100.58, followed by San Diego, which saw an 8.1 percent decrease to $128.12.

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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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