Dive Brief:
- U.S. hotel occupancy fell year over year for a ninth consecutive month in November, with RevPAR also declining, according to newly published data from CoStar.
- In November, U.S. hotel occupancy stood at 57.9%, down 2.8% year over year, while ADR was up 0.6% to $153.77, per CoStar. This led U.S. hotels to see a 2.3% decline in RevPAR during the month.
- The November results continued a tumultuous year for hotel performance, during which hotels reported widespread U.S. RevPAR declines in the second and third quarters amid broad economic uncertainty.
Dive Insight:
Among the top 25 U.S. markets, Tampa, Florida, experienced the steepest declines across each of the three performance metrics in November, with the city’s occupancy, ADR and RevPAR down 21.1%, 7.7% and 27.1%, respectively, according to CoStar.
Minneapolis and Detroit had the lowest occupancies for the month compared to other top 25 markets, standing at 51.9% and 55.9%, respectively.
In October, Tampa (62.5%) and St. Louis (63.1%) had the lowest occupancies, according to CoStar. During that month, nationwide hotel occupancy fell 2.4% to 65.8%, and RevPAR was down 0.9%. U.S. hotels saw rocky performance results for several months preceding October.
Adding fuel to fire in October and November was the longest-running government shutdown in U.S. history, which caused significant travel disruptions and resulted in lost hotel revenue.
In mid-November, in their final hotel forecast revision of the year, CoStar and Tourism Economics projected that U.S. RevPAR will decline for the full-year 2025.
However, amid a challenged environment, more Americans are expected to travel this holiday season than last, AAA reported earlier this month.
