U.S. Hotels See Sharp Declines as External Factors Disrupt Year-over-Year Growth

Written By: Sunil Soren Majhi

Sunil Soren Majhi

I newly began my journey in journalism, focusing on the dynamic world of travel and tourism. As part of Travel and Tour World, I create engaging stories that explore industry trends, showcase impactful developments, and connect readers with the evolving landscape of global travel. My work reflects a passion for discovery, innovation, and meaningful storytelling

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January 17, 2025 5:30 AM

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The U.S. hotel industry faced year-over-year declines in key performance metrics for the week ending 11 January 2025, according to data from CoStar, a leading provider of real estate analytics and marketplaces. The downturn was attributed to calendar shifts, weather disruptions, and other external factors.

Factors Affecting Performance

Industry performance was influenced by:

• Calendar Adjustments: Changes in the Martin Luther King Jr. Day holiday and group/conference schedules.
• Weather Events: Winter storm Cora and fires in Los Angeles caused disruptions and displacement demand.

Weekly Performance Overview (5-11 January 2025)

Compared to the same week in 2024:

• Occupancy: 49.2% (-7.7%)
• Average Daily Rate (ADR): $144.03 (-5.9%)
• Revenue per Available Room (RevPAR): $70.92 (-13.2%)

Market Highlights

Among the Top 25 U.S. markets, Tampa led the way with significant growth across all metrics:

• Occupancy: 79.1% (+18.2%)
• ADR: $178.42 (+7.6%)
• RevPAR: $141.20 (+27.2%)

Los Angeles experienced notable increases due to displacement demand following the fires:

• Occupancy: 65.0% (+5.7%)
• RevPAR: $122.63 (+8.6%)

Conversely, San Francisco reported the steepest decline in RevPAR (-78.1% to $85.89), primarily due to the rescheduling of the J.P. Morgan Healthcare Conference.

Looking Ahead

Further analysis of the Los Angeles fire impact will be featured in STR’s Weekly Insights Blog, set for release on Friday. Industry stakeholders are closely monitoring the effects of weather disruptions and calendar shifts on upcoming performance trends.

As the industry navigates these challenges, key markets like Tampa demonstrate resilience and growth opportunities despite broader declines.