U.s. Hotel Industry Sees Decline In Occupancy And Revpar In August 2025, Indicating Market Slowdown: All You Need To Know

Published on September 23, 2025

As highlighted by STR, an analytics company, nan U.S. edifice manufacture reported a autumn successful nan mean occupancy and gross per disposable room for nan period of August 2025. Though nan mean regular complaint knowledgeable a mini uptick, nan wide assemblage capacity further revealed signs of softening. For some edifice guests and nan hospitality sector, nan driblet successful occupancy coupled pinch RevPAR is simply a important and troubling phenomenon, suggestive of imaginable changes successful nan early of nan recreation sector.

Hotel Performance Shows Mixed Results Across nan U.S.

According to STR’s report, U.S. edifice occupancy dropped by 1.3 percent year-over-year successful August, pinch a complaint of 66.1 percent. Revenue per disposable room (RevPAR), different cardinal metric utilized to measurement nan financial capacity of hotels, besides knowledgeable a 1 percent decline, dropping to USD 105.06. These figures bespeak a challenging period for nan edifice industry, arsenic it faces fluctuations successful request contempt a flimsy summation successful mean regular rates (ADR).

The ADR accrued by 0.3 percent year-over-year to USD 158.93, indicating that hotels were capable to somewhat raise room rates, moreover though occupancy rates were lower. However, this summation successful ADR was not capable to offset nan declines successful some occupancy and RevPAR.

Key U.S. Markets Show Disparity successful Performance

While nan wide U.S. edifice manufacture knowledgeable a downturn successful occupancy and RevPAR, STR highlighted that nan apical 25 U.S. markets performed amended than others. These apical markets exhibited higher occupancy rates and ADR compared to different regions, suggesting that larger cities proceed to pull much demand. However, moreover successful these cardinal markets, location are signs of slowing growth.

New York City, for example, maintained nan highest occupancy complaint successful August among STR’s apical 25 cities astatine 86%, though this marked a 1.4 percent year-over-year decline. Despite this drop, New York remains nan leader successful edifice occupancy, driven by a precocious measurement of tourism and business travellers.

Seattle followed pinch an occupancy complaint of 82.2 percent, but for illustration New York, saw a mini alteration from nan erstwhile year, down by 0.4 percent. These figures constituent to a broader inclination successful which immoderate of nan astir celebrated U.S. cities proceed to acquisition comparatively precocious occupancy rates, but nan maturation successful request whitethorn beryllium plateauing.

Phoenix and Houston Experience nan Lowest Occupancy Rates

In contrast, Phoenix and Houston posted nan lowest occupancy rates among nan apical 25 markets successful August, pinch rates of 55 percent and 55.9 percent, respectively. These cities person faced greater challenges successful attracting guests, which whitethorn beryllium influenced by various factors, including shifts successful recreation demand, location economical conditions, aliases a alteration successful business travel.

The important driblet successful occupancy for cities for illustration Phoenix and Houston could beryllium suggestive of broader trends affecting nan edifice industry. As much travellers opt for leisure trips complete business travel, aliases arsenic seasonal factors power demand, hotels successful definite regions whitethorn struggle to capable rooms, starring to little occupancy and RevPAR figures.

Business Travel Shows Signs of Slowing Down

STR besides noted that weekday occupancy successful nan apical 25 U.S. markets has been slowing, pinch business recreation plateauing. The post-pandemic betterment successful business recreation has been uneven, pinch firm recreation still beneath pre-pandemic levels. This inclination has affected hotels that trust heavy connected business clientele, peculiarly successful cities for illustration New York and Seattle, wherever business recreation historically played a important domiciled successful edifice occupancy rates.

This displacement is important for some nan edifice manufacture and travellers. As business recreation remains unpredictable, hotels whitethorn request to accommodate their strategies to cater much to leisure travellers. For tourists, this could mean much opportunities for affordable stays, particularly successful cities that typically cater to business travellers.

Impact connected Tourists and nan Hotel Experience

For tourists, nan existent authorities of nan edifice manufacture whitethorn connection some challenges and opportunities. In cities pinch declining occupancy rates, specified arsenic Phoenix and Houston, location could beryllium much affordable edifice options available, arsenic hotels activity to pull guests successful an progressively competitory market. Meanwhile, travellers visiting New York, Seattle, aliases different top-tier markets whitethorn still look higher edifice rates, particularly successful nan high-demand summertime and autumn months.

The fluctuating edifice occupancy rates besides bespeak broader changes successful recreation behaviour. As business recreation plateaus and leisure recreation becomes much dominant, cities and hotels that cater to some groups will request to set their offerings. This could mean changes successful pricing strategies, promotional offers, aliases moreover shifts successful nan types of services disposable to travellers.

What This Means for Future Travel Plans

The diminution successful U.S. edifice occupancy and RevPAR successful August 2025 whitethorn awesome a displacement successful nan measurement hotels run and really travellers attack their bookings. With business recreation still lagging down pre-pandemic levels and leisure recreation becoming nan ascendant unit successful nan industry, visitors whitethorn acquisition a much varied scope of options depending connected nan location.

For those readying trips to awesome U.S. cities, it’s basal to support an oculus connected nan evolving edifice landscape. As immoderate markets acquisition slower growth, travellers whitethorn find amended deals successful cities wherever hotels are much competitory successful attracting guests. On nan different hand, apical destinations for illustration New York and Seattle whitethorn proceed to spot higher prices but pinch nan added use of much attractions and amenities tailored to some leisure and business travellers.

A Changing Landscape for U.S. Hotels and Travel

Regarding occupancy and gross per disposable room metrics, nan U.S. edifice industry’s capacity is still uneven. Some markets, specified arsenic New York and Seattle, are still holding up, while Phoenix and Houston are struggling pinch occupancy. In nan U.S. arsenic a whole, nan alteration successful business travel, coupled pinch nan emergence successful leisure travel, has a pronounced effect connected edifice demand.

For tourists, this intends much opportunities for uncovering affordable accommodations successful cities pinch little occupancy rates, but besides nan imaginable for higher prices successful apical destinations. As nan edifice manufacture adjusts to changing recreation trends, it’s important for travellers to beryllium elastic and proactive erstwhile readying their trips, ensuring they return advantage of nan champion disposable deals.