U.S. hotel performance sees continued growth in January 2025

Hotels saw strong gains in RevPAR, ADR, and occupancy, driven by the presidential inauguration, disaster recovery, and a growing gap between luxury and economy properties

In January 2025, U.S. hotel performance showed strong year-over-year growth, with revenue per available room (RevPAR), average daily rate (ADR), and occupancy all experiencing notable increases. These positive trends marked the second consecutive month of strong results, continuing from December 2024. Factors such as the U.S. presidential inauguration, the Los Angeles wildfires, and ongoing recovery from hurricanes contributed to the rise in RevPAR. Additionally, a distinct trend emerged, with luxury properties outperforming economy-tier hotels. Occupancy rates varied across regions, with Tampa, FL leading the top 25 U.S. cities, while St. Louis recorded the lowest occupancy.

Key takeaways

• U.S. hotel RevPAR increased 4.5% to $79.42 in January 2025, with ADR rising 3.4% to $151.20;
• Occupancy increased by 1% to 52.5%;
• Key factors behind RevPAR growth include the presidential inauguration, wildfires in Los Angeles, and hurricane recovery;
• RevPAR growth was stronger at luxury properties (8.2%) compared to economy-tier hotels (1.3%);
• Tampa had the highest occupancy among top 25 U.S. cities at 79.9%, while St. Louis had the lowest at 42.9%;
• STR’s top 25 markets consistently outperformed other markets in terms of occupancy and ADR.

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