Washington Joins Las Vegas, New York City, Miami, Los Angeles, New Orleans, and Others in Significant Hotel Booking Declines, With a Record Drop in Occupancy Across the US by the End of This Year

Published on December 27, 2025

Washington Joins Las Vegas, New York City, Miami, Los Angeles, New Orleans, and Others in Experiencing Significant Hotel Booking Declines, with a Record Drop in Occupancy Across the US by the End of This Year, Driven by Factors Like Event Comparisons, Seasonal Shifts, and Economic Challenges. Washington, D.C. specifically has struggled with the impact of the 43-day federal shutdown, which disrupted business and government-related travel. Other cities, including Las Vegas and New Orleans, have also been affected by challenging comparisons to peak event years, further contributing to a broader slowdown in the hotel industry. Despite these challenges, cities like Miami and Los Angeles continue to leverage high room rates, even as occupancy levels remain weak across many regions.

Washington, DC: Shutdown Struggles

Washington, D.C. has seen significant declines in its accommodation market, with occupancy dropping by 11.3% YOY to 61.4%. Both ADR and RevPAR have suffered considerably, falling by 12.9% and 24.2%, respectively. The key factor behind this downturn is the 43-day federal shutdown, which severely impacted business travel and government-related bookings. As a result, hotels in the capital have faced considerable challenges in maintaining demand. Despite this setback, D.C. remains a critical hub for government, business, and political travel, though it will need time to recover from this difficult period.

Las Vegas: Tough Comparisons After the Peak

Las Vegas is experiencing a slight dip in its accommodation market, with occupancy down by 1.2% YOY at 78.7%. While ADR has declined slightly by 0.5% to $182.40, RevPAR has also decreased by 1.7%, reaching $143.55. The challenge stems from tough comparisons to 2024’s event peaks, which set high expectations for the city’s performance. Despite this, Las Vegas remains a major destination with its vibrant entertainment scene, attracting both leisure and business travelers. While not as robust as in previous years, its unique appeal and ability to host large events continue to contribute to its steady demand.

New York City: The Holiday Powerhouse

New York City’s accommodation scene continues to shine, with occupancy at 92.5%, a slight dip of 0.6% YOY. However, its ADR has surged by 8.7% to $314, and RevPAR is up by 7.9%, reaching $277.89. The primary factor behind this stellar performance is the overwhelming demand during the holiday season, which has driven prices up, marking the city as the leader in ADR growth across the U.S. Despite a slight drop in occupancy, New York City maintains its status as a powerhouse for both tourism and high-end accommodation, where high rates are a reflection of its unmatched demand during peak times.

New Orleans: Conference Comparisons Hurt Performance

New Orleans has seen its accommodation sector take a hit, with occupancy down 1.6% YOY to 58.6%. Both ADR and RevPAR have dropped sharply, with ADR falling by 18.3% to $146.70 and RevPAR plummeting by 29.9% to $83.92. The decline is largely due to tough comparisons against 2024’s major Pharmacist Convention, which brought a surge of business. The city’s famed events and conventions typically drive substantial bookings, but with fewer large-scale events this year, New Orleans is facing a slowdown. Still, its vibrant culture and event-driven economy make it a resilient market for recovery.

Tampa: Post-Storm Normalization

Tampa’s accommodation market is down significantly, with occupancy dropping by 14.3% YOY to 72.6%. ADR has also seen a decline of 10.2%, falling to $155.68, while RevPAR has dropped 28.7%, to $102.91. This downturn follows a spike in demand in 2024 due to Hurricane Milton, which led to an influx of housing-related bookings. As the market normalizes after this surge, Tampa is seeing a return to pre-storm conditions. However, its strong tourism sector and growing business base offer potential for future growth. Tampa’s market will need time to adjust, but the city remains a key destination in Florida’s tourism landscape.

Miami: Stable Demand, Strong Pricing

Miami’s accommodation market remains stable despite a slight dip in occupancy by 0.5%, reaching 74.1%. ADR has risen by 1.2% to $212.50, and RevPAR is up by 0.7%, standing at $157.46. Miami continues to attract a strong mix of leisure travelers, with high pricing power driving its solid performance. The city’s ability to maintain a steady ADR increase reflects its status as a desirable vacation spot, especially with robust demand in its luxury and leisure segments. Miami’s tourism industry benefits from strong seasonal demand and remains a top player in the national accommodation scene.

Los Angeles: Group Demand Faces Challenges

Los Angeles has experienced a slight drop in occupancy, down 2.1% YOY to 68.2%, while ADR has only risen slightly by 0.4%, reaching $195.00. RevPAR has fallen by 1.7%, standing at $132.99. The decline in group demand has been the primary factor affecting performance, as fewer business and group bookings have led to reduced occupancy rates. However, Los Angeles’ ADR remains relatively stable, signaling a market that can still command premium pricing. As one of the top U.S. destinations for business and leisure travel, the city continues to attract visitors despite these minor challenges.

U.S. Nationwide: Mixed Signals in the Market

On a national level, the U.S. accommodation market is seeing a slight decline in occupancy, down 1.6% YOY to 58.6%. While ADR has increased marginally by 0.4%, reaching $156.46, RevPAR has dropped by 1.1% to $91.76. The overall trend suggests that while room rates have slightly improved, overall volume has decreased, reflecting the broader slowdown in travel demand. This shift indicates a cautious approach in the market, with pricing power still in place but volume struggling to match previous years. The nationwide outlook reveals that while high rates are holding steady, occupancy remains weak across many regions.

Washington joins Las Vegas, New York City, Miami, Los Angeles, New Orleans, and others in experiencing significant hotel booking declines, with a record drop in occupancy across the U.S. by the end of this year, driven by factors like event comparisons, seasonal shifts, and economic challenges.

Conclusion

Washington joins Las Vegas, New York City, Miami, Los Angeles, New Orleans, and others in facing significant hotel booking declines, with a record drop in occupancy across the U.S. by the end of this year. These declines are largely attributed to a combination of factors, including tough comparisons to previous peak years driven by events, seasonal fluctuations, and broader economic challenges that have led to a slowdown in travel demand. As the year concludes, these cities will need time to recover, and the accommodation market across the nation will continue to adjust to the changing travel landscape.