Full-year 2025 U.S. hotel occupancy and revenue per available room each declined year over year for the first time since 2020, according to real estate data provider CoStar.
Full-year occupancy declined 1.2 percent year over year to 62.3 percent, while RevPAR dropped 0.3 percent to $100.02. Average daily rate increased 0.9 percent to $160.54, according to CoStar, which is the parent company of hotel analytics firm STR.
Before the 2020 Covid-19 pandemic, the last year in which hotel occupancy dropped year over year was in 2019, when it declined 0.3 percent, according to a CoStar spokesperson. The most recent pre-pandemic annual drop in RevPAR was in 2009, amid the Great Recession, when it declined 16.5 percent.
Among the company's top 25 U.S. markets, New York City registered the highest full-year 2025 occupancy (84.1 percent, down 0.2 percent year over year), ADR ($333.71, up 4.7 percent) and RevPAR ($280.71, up 4.5 percent).
San Francisco registered the highest year-over-year increase in ADR (up 6 percent to $225.82) and RevPAR (up 11.8 percent to $155.84), while St. Louis posted the largest gain in occupancy (up 6.5 percent to 61.7 percent).
The steepest drop in year over year 2025 occupancy occurred in Houston (down 8.6 percent to 58.9 percent), while Las Vegas posted the largest declines in ADR (down 4.3 percent to $199.79) and RevPAR (down 10.9 percent to $149.13).