- Occupancy and RevPAR fell YOY for the first time since 2020, CoStar reported.
- A total of 749 hotels with 79,116 rooms opened in 2025.
- New York City and Phoenix are set to open the most U.S. hotel rooms in 2026.
U.S. HOTEL METRICS, such as occupancy and RevPAR, fell year over year for the first time since 2020, according to CoStar. New York City and Phoenix are set to open the most hotel rooms in 2026.
Occupancy stood at 62.3 percent in 2025, down 1.2 percent from 2024, while ADR was $160.54, up 0.9 percent and RevPAR was 100.02, down 0.3 percent, CoStar said in a statement. New York City recorded occupancy of 84.1 percent, ADR of $333.71, and RevPAR of $280.71. Occupancy was down 0.2 percent from 2024, while ADR and RevPAR rose 4.7 percent and 4.5 percent, respectively.
San Francisco had the largest increase in ADR, up 6 percent to $225.82 and RevPAR, up 11.8 percent to $155.84, while St. Louis had the largest gain in occupancy, up 6.5 percent to 61.7 percent.
Houston had the largest drop in occupancy, down 8.6 percent to 58.9 percent, while Las Vegas had the largest declines in ADR, down 4.3 percent to $199.79 and RevPAR, down 10.9 percent to $149.13.
NYC, Phoenix lead 2026 openings
New York City and Phoenix are set to open the most U.S. hotel rooms in 2026, with New York City adding 4,852 rooms and Phoenix 3,650, according to CoStar. Dallas with 3,558 rooms, Orlando with 1,988 and Miami with 1,954 round out the list.
“For a second consecutive year, New York City leads the nation in expected new-build openings,” said Isaac Collazo, senior director of analytics at STR. “This shouldn’t be a surprise given that the market has also led the country in occupancy for the last three years. That said, both room supply and room demand are still lower today than they were in 2019, showing there is still opportunity for further growth.”
According to CoStar, 749 hotels with 79,116 rooms opened in the U.S. in 2025. Openings are expected to rise to 891 hotels with 99,011 rooms in 2026 and 1,688 hotels with 191,926 rooms in 2027.
Collazo said that while U.S. hotel development has been slow, there is optimism due to the number of projects in the pipeline.
“It’s not surprising that 2025 saw the largest number of new openings since 2021 and 2026 openings are expected to return to pre-pandemic levels,” he said.
A recent PricewaterhouseCoopers report projects 0.9 percent RevPAR growth and 62 percent occupancy for the U.S. lodging industry in 2026, with inflation, supply growth and AI-driven changes in travel behavior and hotel operations posing challenges.
