Vishnu Rageev R is a journalist with more than 15 years of experience in business journalism. Before joining Asian Media Group in 2022, he worked with BW Businessworld, IMAGES Group, exchange4media Group, DC Books, and Dhanam Publications in India. His coverage includes industry analysis, market trends and corporate developments, focusing on retail, real estate and hospitality. As a senior journalist with Asian Hospitality, he covers the U.S. hospitality industry. He is from Kerala, a state in South India.
Steady U.S. RevPAR Growth Forecast for 2025, Driven by Urban Demand
U.S. REVPAR IS expected to grow steadily in 2025, supported by urban markets benefiting from improved group and business travel and inbound international recovery, according to a recent CBRE study. The firm expects a 2 percent increase, with occupancy up 23 bps and ADR rising 1.6 percent.
RevPAR in 2025 is projected to be 16.6 percent above 2019 levels, reflecting the lodging industry's continued recovery, CBRE said in a statement.
“The U.S. hotel market is poised for steady growth in 2025, primarily led by continued outperformance of the urban segment, which should experience RevPAR growth of 2.8 percent this year,” said Rachael Rothman, CBRE’s head of hotel research and data analytics. “The sector’s resilience and the sustained demand for higher-priced hotels bode well for the upcoming year.”
CBRE anticipates 2.4 percent GDP growth and 2.5 percent inflation in 2025. With GDP closely tied to RevPAR, economic strength will directly impact lodging performance.
Over the next few years, RevPAR is expected to grow between 1.5 percent and 3.5 percent, due to major events like the 2026 FIFA World Cup, the U.S.’ 250th anniversary, and the 2028 Olympics, along with continued demand for national parks, gateway cities and leisure destinations—barring a recession, the research firm found.
Bill Grice, CBRE Hotels' Americas president, said U.S. hotel fundamentals remain strong despite cost pressures, with investment activity expected to pick up in late 2025.
“With ample dry powder available and the potential for a lower Fed funds rate before year-end, we expect to see a narrowing of buyer and seller expectations, fueling increased transaction activity,” he said.
Hotel supply growth is expected to remain below 1 percent over the next three years due to high financing and construction costs, the statement said. Additional tariffs, labor shortages, or limited Fed rate cuts could further constrain supply, boosting pricing power and replacement costs.
CBRE recently reported growing optimism among U.S. hotel investors, with 94 percent planning to maintain or increase investments this year, up from 85 percent in 2023, driven by better returns, distressed opportunities and favorable pricing.
U.S. hotel performance rose week over week but remained below year-ago levels, CoStar reported.
St. Louis led year-over-year gains among top 25 markets: occupancy up 21 percent to 81.3 percent, ADR up 8.1 percent to $145.21, RevPAR up 30.8 percent to $118.10.
Houston posted the largest declines: occupancy down 20 percent to 57.7 percent, ADR down 17.6 percent to $114.55, RevPAR down 34.2 percent to $66.05.
U.S. HOTEL METRICS rose for the week ending July 12 but remained below year-ago levels, according to CoStar. St. Louis posted the largest gains among the top 25 markets across all three key performance metrics.
Occupancy rose to 67.2 percent for the week ending July 12, up from 61.1 percent the previous week but 3.2 percentage points lower year over year. ADR increased to $158.42 from $156.71, a 0.5 percent decline from the same week in 2024. RevPAR rose to $106.39 from $95.80, down 3.7 percent year over year.
Among the top 25 markets, St. Louis posted the largest year-over-year gains across all metrics. Occupancy rose 21 percent to 81.3 percent, ADR increased 8.1 percent to $145.21 and RevPAR rose 30.8 percent to $118.10, driven by the 62nd General Conference Session of the Seventh-day Adventist Church.
Houston posted the largest declines across the three metrics: occupancy fell 20 percent to 57.7 percent, ADR dropped 17.6 percent to $114.55 and RevPAR declined 34.2 percent to $66.05, reflecting comparison with post-Hurricane Beryl impacts in 2024.
By clicking the 'Subscribe’, you agree to receive our newsletter, marketing communications and industry
partners/sponsors sharing promotional product information via email and print communication from Asian Media
Group USA Inc. and subsidiaries. You have the right to withdraw your consent at any time by clicking the
unsubscribe link in our emails. We will use your email address to personalize our communications and send you
relevant offers. Your data will be stored up to 30 days after unsubscribing.
Contact us at data@amg.biz to see how we manage and store your data.
Occupancy, ADR and RevPAR fell week over week and year over year for the week ending July 5, according to CoStar.
St. Louis led in occupancy and RevPAR gains, while San Diego had the only double-digit ADR increase.
Las Vegas saw the steepest drops in occupancy, ADR and RevPAR.
U.S. HOTEL METRICS declined for the week ending July 5, hitting weekly and annual lows, according to CoStar. St. Louis led the top 25 markets in year-over-year occupancy and RevPAR growth.
Occupancy fell to 61.1 percent for the week ending July 5, down from 71.9 percent the previous week and 0.4 percentage points lower year over year. ADR declined to $156.71 from $163.30, a 0.9 percent drop from the same week in 2024. RevPAR decreased to $95.80 from $117.45, down 1.3 percent year over year.
Among the top 25 markets, St. Louis posted the largest occupancy gain, up 27.1 percent to 64 percent and a RevPAR increase of 38.4 percent to $81.19. San Diego posted the only double-digit ADR increase, up 10.9 percent to $271.96.
Las Vegas reported the largest declines in occupancy, ADR and RevPAR. Its occupancy fell 16.8 percent to 66.7 percent, ADR dropped 14.3 percent to $154.16 and RevPAR declined 28.7 percent to $102.75.
Occupancy and RevPAR rose, while ADR dipped slightly during the week ending June 28, according to CoStar.
Philadelphia led the top 25 markets with the highest year-over-year gains across all key metrics.
Las Vegas saw the steepest declines in ADR and RevPAR.
U.S. HOTEL PERFORMANCE was mixed for the week ending June 28, according to CoStar. Occupancy and RevPAR rose from the previous week, while ADR dipped slightly and year-over-year metrics remained lower.
Occupancy rose to 71.9 percent for the week ending June 28, up from 70.5 percent the previous week, but 0.1 percent below the same week last year. ADR edged down to $163.30 from $163.77, flat year over year. RevPAR increased to $117.45 from $115.39, reflecting a 0.1 percent decline from last year.
Among the top 25 markets, Philadelphia posted the highest year-over-year gains in all key performance metrics: occupancy rose 10.7 percent to 80 percent, ADR increased 14.5 percent to $173.43 and RevPAR climbed 26.7 percent to $138.66.
Las Vegas reported the largest declines in ADR and RevPAR, with ADR down 10.5 percent to $172.28 and RevPAR falling 2.5 percent to $122.22.
U.S. hotels posted weekly and annual gains for the week ending June 21.
San Francisco led in year-over-year occupancy, up 17.2 percent to 72.2 percent, with RevPAR up 26.7 percent to $141.09.
Las Vegas saw the steepest drops in occupancy and RevPAR.
U.S. HOTEL METRICS improved for the week ending June 21, with gains both week over week and year over year, according to CoStar. San Francisco led the top 25 markets in both occupancy and ADR growth versus the same week last year.
Occupancy increased to 70.5 percent for the week ending June 21, up from 68.6 percent the previous week and 1.3 percent higher than the same week last year. ADR rose to $163.77 from $163.44 the prior week, a 2 percent year-over-year gain. RevPAR increased to $115.39 from $112.11, up 3.3 percent year over year.
Among the top 25 markets, San Francisco reported the highest year-over-year occupancy increase, up 17.2 percent to 72.2 percent, along with a 26.7 percent rise in RevPAR to $141.09. Boston posted the largest ADR gain, up 17.7 percent to $276.12, which drove the second-largest RevPAR increase, up 24 percent to $228.61.
Las Vegas reported the largest decreases in occupancy and RevPAR, with occupancy down 12.6 percent to 69.5 percent and RevPAR falling 17.4 percent to $117.08.
U.S. HOTEL METRICS increased for the week ending June 14 but remained below year-ago levels, according to CoStar. Industry performance in May was also higher than the same month last year.
Occupancy rose to 68.6 percent for the week ending June 14, up from 67 percent the previous week but 2.4 percentage points lower year over year. ADR increased to $163.43 from $161.57, a 0.6 percent decline year over year. RevPAR rose to $112.11 from $108.23, down 1.8 percent year over year.
Among the top 25 markets, St. Louis had the highest YOY occupancy gain, up 7.1 percent to 73.2 percent. San Diego reported the largest ADR increase, up 10.4 percent to $244.60 and the largest RevPAR increase, up 13.1 percent to $205.12.
Las Vegas posted the largest declines across the three measures: occupancy down 20.6 percent to 66.2 percent, ADR down 9.1 percent to $180.40 and RevPAR down 27.8 percent to $119.51.
RevPAR fell by double digits in Houston, down 14.3 percent to $74.86; Phoenix, down 11.1 percent to $69.30 and Philadelphia, down 10.2 percent to $117.00.
May results
The top 25 markets posted higher occupancy and ADR than other markets in May, CoStar reported.
Occupancy rose to 65.3 percent in May, up from 63.9 percent in April but 0.7 percent lower than May 2024. ADR increased to $162.72 from $161.28, up 0.8 percent year over year. RevPAR reached $106.30, up from $103.11, a 0.1 percent increase from May 2024.
New York City recorded the highest occupancy among the top 25 markets, up to 87.9 percent compared to the previous year. New Orleans at 60.1 percent and Houston at 61.4 percent had the lowest occupancy for the month.