U.S. Hotel Industry Faces Yearly Declines in Occupancy and RevPAR, Latest Data Reveals

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According to the recent data from CoStar, the U.S. hotel industry has experienced the majority of negative year-over-year changes for the week ending 13 September 2025. Even though certain areas may have recorded improvements in Average Daily Rates (ADR), most markets have witnessed falls in essential performance indicators like occupancy rates and Revenue per Available Room (RevPAR).In fact, Anaheim and Washington D.C., in particular, were two of the cities that experienced the most considerable declines across all major metrics. Several reasons can be found for this, like comparisons to the prior years’ events.

U.S. Hotel Industry Overview for September 2025

For the week of 7 to 13 September 2025, U.S. hotels showed overall mixed results, with a decline in occupancy and RevPAR, despite a small increase in ADR. The figures from CoStar revealed:

• Occupancy: 65.4percent (-1.8percent)
• Revenue per Available Room (RevPAR): USD 106.43 (-1.7 percent)
• Average Daily Rate (ADR): USD 162.71 (+0.1percent)

Although the ADR saw a modest increase, many regions saw declines in occupancy and revenue per available room, reflecting a tough week for many hotel operators.

Anaheim’s Struggles and Impact on Key Metrics

Anaheim, California, experienced the steepest declines in all three key performance metrics. Occupancy fell by 15.4 percent , dropping to 70.6 percent, while ADR decreased by 10.5 percent, bringing it down to USD 212.16. The overall RevPAR also saw a notable dip, falling by 24.2 percent to USD 149.80. These declines were largely due to the comparison with the previous year’s RE+ 24 event, which impacted hotel performance for the same period in 2024.

Anaheim’s significant drops highlight the volatility that can occur in markets that rely heavily on events and conventions. In particular, large events such as RE+ can cause a noticeable spike in hotel demand, and when these events don’t occur annually, hotels can face considerable challenges.

Washington D.C. Sees Substantial Drops in Hotel Performance

Washington D.C. also reported significant declines for the week ending 13 September 2025. The city’s occupancy fell by 11.7 percent, dropping to 67.8 percent, while ADR dropped by 7.4 percent, reaching USD198.85. The most severe drop came in RevPAR, which fell by 18.3 percent, bringing it to USD 134.77.

The city’s performance was impacted by several factors, including seasonal fluctuations and potential dips in demand due to fewer events and conventions. As a major destination for both business and leisure travellers, Washington D.C. continues to experience fluctuations in performance depending on the time of year and major event schedules.

Other Major U.S. Markets Show Declines in Occupancy

Across the Top 25 U.S. hotel markets, 16 regions experienced a decline in occupancy during the week. This trend underscores the challenges many cities face in a competitive hotel landscape. While some cities continue to see strong demand, many others have struggled with fluctuating demand, impacted by seasonal changes and the ongoing effects of global economic factors.

The Broader Impact on U.S. Tourism and Travel

For tourists and travellers, these performance trends suggest that the U.S. hotel industry may face challenges in maintaining consistent growth. While average daily rates have shown some modest growth, the decline in occupancy and RevPAR across major cities such as Anaheim and Washington D.C. indicates that overall demand may not be as robust as in previous years.

Travellers looking for deals may find that prices are relatively steady in some areas, but availability could be impacted during certain peak periods. Destinations with major events, like Anaheim’s RE+ 24, demonstrate the volatility of hotel markets tied closely to annual or large-scale events, where performance can swing dramatically based on the event calendar.

How Tourists Can Navigate the U.S. Hotel Landscape

For tourists planning travel in the U.S., it’s essential to stay informed about regional hotel performance and potential seasonal trends. While cities like Anaheim and Washington D.C. may experience fluctuations, other destinations could offer more stable pricing and availability. Understanding the factors driving these fluctuations, such as major events and economic conditions, can help tourists plan trips and budget more effectively.

It’s also worth considering the broader trend of rising ADR in certain markets, indicating that while occupancy might be lower, hotels are still finding ways to generate revenue through higher rates. Tourists may want to book well in advance or seek out alternative accommodation options, such as vacation rentals, to find the best deals in high-demand cities.

The Outlook for U.S. Hotels and Tourism

The week of 7 to13 September 2025 brought both prosperity and hardship for the U.S. hotel industry. This has implications for visitors to the country as they can encounter cities with steep hotel rates and competitive pricing simultaneously. The case studies of Anaheim and Washington D.C. reinforce the importance of event-driven demand. Nonetheless, for greatest value and, and certainty of hotel reservations, travellers would do well to be flexible and proactive with travel and booking arrangements.

Future travel and tourism professionals, as well as travellers will need to incorporate hotel industry statistics into their travel plans, plan accordingly, and incorporate the prevailing market dynamics to the best of their abilities.

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