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U.S. hotel market shows mixed results as occupancy and average daily rate trends differ

Market data reveals sharp contrasts in performance amid macroeconomic pressures and shifting travel patterns
The Empire State Building and Madison Square Garden seen from Midtown South, New York City. (Franklin Abreu/CoStar)<br/>
The Empire State Building and Madison Square Garden seen from Midtown South, New York City. (Franklin Abreu/CoStar)
CoStar Analytics
September 17, 2025 | 9:16 P.M.

Through July 2025, the U.S. hospitality sector is defined by pronounced divergence in market performance. Out of 172 markets tracked by STR, 87 have posted year-over-year declines in occupancy, highlighting a landscape where larger U.S. economic volatility and local dynamics are shaping outcomes more than ever.

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News | U.S. hotel market shows mixed results as occupancy and average daily rate trends differ