The US hotel industry is grappling with a significant downturn in both international and domestic travel, leading to declining revenues across major cities.
Once bustling hubs like New York and Las Vegas are now experiencing reduced visitor numbers and lower occupancy rates.
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Decline in international arrivals
International tourism to the United States has been on a steady decline, with overseas visits falling 11.6% in March 2025 compared to the same period last year.
Countries such as Germany, China, and Switzerland have seen double-digit decreases in travel to the US, attributed to stricter visa policies, trade tariffs, and political tensions.
Additionally, federal funding for tourism promotion has been significantly reduced, further impacting efforts to attract foreign visitors.
Domestic travel slowdown
Domestic travel has also experienced a downturn. In cities like New York, hotel occupancy rates have dipped nearly 2% in June 2025 compared to the previous year.
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By GlobalDataFactors contributing to this decline include economic uncertainty, rising travel costs, and changing consumer preferences.
Additionally, reduced government spending and lower international arrivals from Canada and parts of Europe have further strained the industry.
Impact on hotel revenues
The combination of decreased international and domestic travel has led to a decline in hotel revenues.
Major hotel chains like Hilton and Wyndham have reported drops in revenue per available room (RevPAR), with Hilton experiencing a 0.5% decrease and Wyndham a 3% decline.
This trend is particularly evident in cities that heavily rely on tourism, such as Las Vegas, where hotel occupancy rates have fallen significantly.
As the US hotel industry faces these challenges, experts suggest that recovery may be achievable with increased consumer confidence and stabilization in business travel.
However, the current outlook remains uncertain, with ongoing economic and political factors influencing travel patterns.
