The US hotel industry experienced varied performance in April 2025, influenced by shifting holiday calendars and broader economic factors, according to data from CoStar, a provider of real estate analytics.
Key performance indicators showed slight declines in occupancy and revenue per available room (RevPAR), while the average daily rate (ADR) saw modest growth.
Overall performance metrics reflect slight downturn
In April 2025, the national occupancy rate for US hotels stood at 63.9%, marking a 1.9% decrease compared to April 2024.
The ADR increased by 1.8% to $161.28, while RevPAR experienced a marginal decline of 0.1%, settling at $103.11.
The timing of Easter in March this year, as opposed to April in 2024, contributed to these year-over-year variances.
Regional disparities highlight varied market dynamics
Among the top 25 markets, New York City achieved the highest occupancy rate at 84.8%, a 0.5% increase from the previous year.
Conversely, Detroit and Minneapolis reported some of the lowest occupancy levels, with Detroit experiencing a 2.3% decline to 57.4%, and Minneapolis seeing a 2.7% increase to 60.9%.
San Francisco/San Mateo demonstrated significant growth across all key metrics: occupancy rose by 14.0% to 69.6%, ADR increased by 20.5% to $227.44, and RevPAR surged by 37.4% to $158.36. These gains suggest a robust recovery in that region.
Economic factors influence industry outlook
Broader economic conditions have impacted the hospitality sector.
Hilton Worldwide revised its 2025 revenue forecast downward, citing economic uncertainties linked to recent tariff implementations and concerns over a potential recession.
The company now anticipates RevPAR growth between 0% and 2%, down from an earlier projection of 2% to 3% .
Similarly, Marriott International adjusted its full-year revenue outlook due to slowing travel demand, now expecting RevPAR growth between 1.5% and 3.5%, a reduction from the previous estimate of 2% to 4%.
These adjustments reflect cautious optimism amid fluctuating consumer sentiment and international travel patterns.
The U.S. hotel industry's performance in April 2025 underscores the sector's sensitivity to both calendar variations and macroeconomic factors.
While certain markets exhibit strong growth, others continue to face challenges, highlighting the importance of adaptive strategies in an evolving landscape.
