- U.S. hotels post mostly positive January performance, CoStar reported.
- Hotels record first RevPAR gain since March 2025.
- Minneapolis leads top 25 markets in occupancy and RevPAR growth.
THE U.S. HOTEL industry posted mostly positive year-over-year performance in January, according to CoStar. This was the first month of RevPAR growth since March 2025.
Occupancy was 52.4 percent in January, down 0.2 percent from a year earlier, CoStar data showed. ADR was $152.09, up 0.4 percent and RevPAR was $79.69, up 0.4 percent from January 2025.
Among the top 25 markets, Minneapolis had the largest gains, with occupancy up 17.5 percent to 50.6 percent and RevPAR up 25.9 percent to $63.01. Winter is typically a low-demand period for Minneapolis hotels, CoStar reported. The increase in demand from that baseline was likely driven by federal agent activity, related protests and media coverage. Properties outside the city saw slightly higher gains than those in the urban core, though occupancy in surrounding areas remained around 50 percent.
Driven by the CFP Playoff Championship Game, Miami recorded the only double-digit ADR gain, rising 12.4 percent to $287.84.
Compared with the 2025 presidential inauguration, Washington, D.C., saw the largest declines in ADR, down 25.8 percent to $151.99 and RevPAR, down 31.3 percent to $76.36. Tampa recorded the largest drop in occupancy, down 14.9 percent to 68.2 percent.
A Highland Group report found U.S. extended-stay hotels saw strong January growth, especially at lower price points, as supply and demand outpaced the broader industry.
