Monthly U. S. Hotel Industry Growth Slowed as Q1 Progressed
After two months of gains, occupancy declined in March
BY JAN D. FREITAG
THE U. S. HOTEL INDUSTRY recorded healthy performance results in the first quarter, with revenue per available room, or RevPAR, increasing 2.2 percent. However, that quarterly result was lifted by strong January results, and in March, RevPAR increased by only 0.8 percent. Owners and operators are carefully watching their bookings in the second quarter to see if the industry’ s performance is declining or is merely showing slower growth.
The impact of Hurricane Helene in October 2024 continued to skew the data in January, with occupancy one percent higher than a year ago. Some residents in Los Angeles were displaced after the wildfires, lifting room demand around that market. In addition, Washington, D. C., hotels hosted guests for the Presidential inauguration and recorded strong rate growth. February data was impacted by the switch of the Super Bowl from Las Vegas in 2024 to New Orleans in 2025. The shift away from the nation’ s largest market and its affiliated attractions likely
Healthy momentum in January could not be maintained
JANUARY FEBRUARY MARCH
PERCENT CHANGE
SOURCE: CoStar, April 2025
Occupancy
Average Daily Rate Key Performance Indicators
Revenue Per Available Room
PULSE n JUNE / JULY 2025 22