U.S. hotel revenue per available room in January increased
0.4 percent year over year, the first such monthly increase since March, according
to real estate data provider CoStar, parent company of hotel analytics firm
STR.
U.S. hotel occupancy in January declined 0.2 percent year
over year to 52.4 percent, and average daily rate increased 0.6 percent to $152.09.
January RevPAR was $79.69.
Minneapolis reported the highest occupancy increase among CoStar's
top 25 markets at 17.5 percent to 50.6 percent. CoStar noted that such an
increase—albeit from a soft baseline, as demand typically is low during
Minnesota winter—"was likely influenced by federal agent activity and
related protests and media coverage." U.S. Immigration and Customs
Enforcement and the Customs and Border Protection in December began
a weeks-long and controversial continuing operation in Minneapolis.
According to Meet Minneapolis, the ICE angle doesn’t capture
the whole picture. The destination management organization for the city also
had worked with a number of local and statewide exhibitions to place their events
at the convention center in January for the first time, which also impacted hotel
occupancy in the urban core.
Minneapolis also reported the highest January RevPAR gain
among CoStar's top 25 markets, up 25.9 percent year over year to $63.01.
Washington, D.C., among the top 25 reported the sharpest
declines in ADR (down 25.8 percent to $151.99) and RevPAR (down 31.3 percent to
$76.36), which CoStar attributed to the 2025 presidential inauguration.
Tampa, Fla., had the largest drop in occupancy among the top
25, down 14.9 percent to 68.2 percent, likely affected by higher occupancies a
year ago in the aftermath of Hurricane Milton.
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December 2025 hotel performance figures