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. 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.
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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.
What were the key hotel performance trends this week in the U.S.?
U.S. HOTEL PERFORMANCE rose for the week ending June 7 but remained lower year over year, according to CoStar. Occupancy, ADR and RevPAR increased week over week, with St. Louis recording the highest gains across all three metrics.
Occupancy increased to 67 percent for the week ending June 7, up from 61 percent the previous week but 3.2 percentage points lower year over year. ADR rose to $161.57 from $151.48 but was flat compared to the same week in 2024. RevPAR increased to $108.23 from $92.45, down 3.2 percent YoY.
Among the top 25 markets, St. Louis posted the largest year-over-year gains across all metrics. Its occupancy rose 19.5 percent to 80 percent, ADR increased 7.3 percent to $142.59 and RevPAR rose 28.2 percent to $114.12.
The steepest RevPAR declines were in San Diego, down 23.5 percent to $148.34 and Houston, down 18.0 percent to $69.83.
What were the U.S. hotel occupancy trends in late May 2025?
U.S. HOTEL METRICS declined for the week ending May 31, marking weekly and yearly lows, according to CoStar. St. Louis led the top 25 markets in year-over-year occupancy growth.
Occupancy fell to 61 percent for the week ending May 31, down from 67.5 percent the previous week and 1.6 percentage points lower year over year. ADR declined to $151.48 from $164.57, a 0.3 percent drop from the same week in 2024. RevPAR decreased to $92.45 from $111.02, down 1.9 percent year over year.
Among the top 25 markets, St. Louis posted the largest occupancy increase, up 11.1 percent to 64.5 percent. New York and Los Angeles recorded the largest ADR gains, up 5.7 percent to $290.35 and $189.06, respectively.
The steepest RevPAR declines were in New Orleans, down 30.2 percent to $73.59, and Dallas, down 21.5 percent to $67.25.
U.S. Hotel Performance Shows Mixed Results for Holiday Week
U.S. HOTEL PERFORMANCE showed mixed results for the week ending with Memorial Day weekend, according to CoStar. Occupancy rose from the previous week, while ADR and RevPAR decreased slightly, though year-over-year metrics remained subdued.
Demand for the Friday and Saturday of the holiday weekend was the third highest on record, behind only 2022 and 2019.
Occupancy increased to 67.5 percent for the week ending May 24, up from 67.2 percent the previous week but down 0.4 percentage points year over year. ADR decreased to $164.57 from $166.31 but still reflected a 1.5 percent year-over-year gain. RevPAR edged down to $111.02 from $111.80, up 1.1 percent from the same period in 2024.
Among the top 25 markets, St. Louis recorded the largest occupancy increase, up 19.3 percent to 76.7 percent. The highest ADR gain was in New York City, rising 12.6 percent to $358.57, while San Francisco/San Mateo posted the largest RevPAR increase, up 24.3 percent to $169.87.
Houston saw the steepest occupancy decline, down 16.2 percent to 62.1 percent. New Orleans reported the largest decreases in ADR and RevPAR, with ADR declining 7.3 percent to $155.45 and RevPAR falling 17.8 percent to $94.78.