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JLL: U.S. hotels set record Q1 RevPAR of $92

RevPAR growth was fueled by strong ADR despite declining occupancy

U.S. hotels reach record Q1 RevPAR of $92, March sets all-time high – JLL report

U.S. hotels posted a record first-quarter RevPAR of $92, up 2.2 percent year over year, with March marking the highest year-to-date RevPAR on record, according to JLL.

U.S. Hotels Set Record Q1 RevPAR in 2025 Despite Market Headwinds

U.S. HOTELS POSTED a record first-quarter RevPAR of $92, a 2.2 percent year-over-year increase, with March recording the highest year-to-date RevPAR in U.S. history, according to JLL. The growth was driven by strong ADRs, though occupancy declined due to a slowdown in budget leisure travel.

JLL’s Q1 2025 U.S. Hotel Investment Trends Report found that urban hotels led RevPAR gains, supported by a rebound in corporate and group travel.


Investors targeted full-service urban hotels trading at a 67 percent discount to replacement cost. However, bifurcation persisted, with upper-tier hotels outperforming economy properties. Economy hotels saw a 5.7 percent RevPAR drop year over year, though the segment remained up 1.9 percent compared to the first quarter of 2023.

Inbound international travel slowed during the quarter, with further softening expected in the months ahead. Foreign investor interest remained strong, particularly from Middle Eastern, European, and select Asian groups, targeting high-quality assets in top-tier markets. Limited new supply, compounded by tariffs and development constraints, is expected to support performance resilience through 2025.

Hotel transaction volume reached $4.6 billion, up 23 percent year over year. Midsized deals between $50 million and $199 million drove liquidity, as high debt costs continued to limit large portfolio transactions. Select-service and extended stay hotels led transactional activity.

Despite market volatility, hotels remain a preferred asset class among lenders, with a diverse buyer pool even as some real estate investment trusts pulled back. Approximately $145 billion in hotel loan maturities through 2026 is expected to sustain transaction activity.

Separately, CBRE also reported a 2.2 percent RevPAR increase in the first quarter, driven by a 1.9 percent rise in ADR and a 0.4 percent increase in occupancy, despite economic uncertainty.


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