New York Joins California, Hawaii, North Carolina, and Washington as US Hotel Revenues Plunge While Florida, Louisiana, and Ohio Lead a Travel Recovery

In 2025, US hotel industry is experiencing a widening split, as New York, California, Hawaii, North Carolina, and Washington face plunging revenues fueled by weak international arrivals, higher operating costs, and soft business travel, while Florida, Louisiana, and Ohio are leading a travel recovery driven by strong domestic demand, high-profile events, and continued growth in extended-stay and emergency lodging. With tourism momentum stalling in some of the nation’s most iconic destinations, other states are capitalizing on regional travel, major gatherings, and infrastructure-related stays to stabilize their hospitality sectors and emerge ahead of the national curve.

New York: Plunging Occupancy and RevPAR Paint a Bleak Picture

In New York, hotel operators are sounding the alarm. Occupancy in Manhattan hovered at just 58.3% this April, a sharp drop from pre-pandemic levels that often topped 80%. Revenue per available room (RevPAR) is also in decline, down 7.6% year-over-year, according to STR data. Many hoteliers say business travel is sluggish, and international visitors haven’t returned in full force. That’s left luxury hotels scaling back amenities, trimming staff, and trying to stay afloat in one of the country’s most expensive markets.

The problem runs deeper than just empty beds. The city’s global image, once magnetic, has lost some shine. Travel advisories, visa wait times, and long-term effects from the Trump-era slump continue to deter foreign tourists. Smaller hotels across SoHo and the Lower East Side report fewer group bookings and shorter stays. With higher taxes, rising wages, and energy costs all piling on, New York’s hotel sector isn’t just underperforming—it’s hanging by a thread.

California: Wildfires and Cost Pressures Hold Back Recovery

California’s story isn’t much brighter. In Los Angeles, RevPAR slipped 5.2% during Q1 2025, weighed down by soft demand and growing expenses. San Francisco’s numbers were even more volatile, with a 33.9% RevPAR drop during a key April week tied to event cancellations. Despite the state’s global appeal, hotel owners are dealing with wildfire disruptions, fewer inbound international flights, and growing pressure to raise wages—all of which are squeezing margins thin.

Some operators are scaling back marketing and renovation plans just to stay solvent. A handful of boutique properties have temporarily closed their doors, citing high overhead and inconsistent bookings. The Golden State is still a dream for many travelers, but for those running hotels, it’s become a much harder place to turn a profit.

Hawaii: Maui’s Tourism Slowdown Extends Across Islands

Hawaii, often seen as paradise, is still reeling from past storms—literally and financially. Maui, in particular, continues to struggle in the aftermath of the devastating 2023 wildfires. Visitor arrivals are down more than 23% from pre-pandemic norms, and RevPAR across the islands has dropped nearly 15% year-over-year. Hotels that once ran at full capacity are now juggling empty rooms and slashed rates just to stay competitive.

The deeper challenge is Hawaii’s reliance on international long-haul markets, especially Japan and Australia. Those travelers haven’t returned in full strength, and airlift from Asia remains limited. On top of that, many travelers still view the islands as a place in recovery—not quite ready for carefree vacationing. Until that perception changes, Hawaii’s hotel sector will remain stuck in a slower gear.

North Carolina: Hurricane Recovery Disrupts Hotel Operations

North Carolina’s hotel woes are tied to a different kind of storm. Hurricane Helene, which battered parts of the state in late 2024, left behind more than physical damage—it disrupted an entire season of tourism. In Asheville, hotel stays dropped 74% in October and were still down 57% in November, according to state lodging reports. Many properties are still undergoing repairs or dealing with insurance setbacks well into 2025.

Even outside the hurricane zone, occupancy across North Carolina has struggled to regain momentum. In Q1, statewide hotel occupancy remained 12% below 2023 levels. With fewer corporate events, a cautious leisure market, and continued staffing challenges, hotels across the state are running half-full and operating with uncertainty. For many independent operators, the margin for survival is now razor-thin.

Washington: International Booking Drop Hits Seattle and D.C.

In Washington state, the hotel market is cooling off after a hot post-pandemic run. Seattle has seen a 4.8% decline in RevPAR during the first quarter of 2025, with occupancy slipping below 60% in several downtown zones. While demand from tech-related business travel once kept rooms full, recent layoffs and travel budget cuts have taken a toll. Fewer Asian tourists and a slowdown in cruise bookings have added to the pressure.

Meanwhile, in Washington, D.C., the trend is similar. International arrivals are down 6% year-over-year, and bookings from Europe are especially weak. Hotels that once catered to global dignitaries and major events are now slashing rates and bundling services just to fill rooms. The mood in the capital’s hospitality sector? Tense, uncertain, and far from confident.

Florida: Event Travel and Emergency Demand Power a Comeback

Florida is on a different trajectory altogether. Cities like Tampa and West Palm Beach are not only seeing bookings rebound—they’re surging. According to STR, Tampa’s RevPAR jumped 11.2% year-over-year, while West Palm Beach hotels hit 76% occupancy in April, well above the national average. From sports tournaments to medical conferences to hurricane relief housing, Florida’s hotel sector is thriving on both leisure and emergency demand.

What’s driving the success? A mix of smart tourism promotion, year-round events, and affordable air access. Unlike states that depend heavily on international travel, Florida has tapped deep into domestic markets and leaned hard into extended-stay and upper-midscale growth. Operators here aren’t slashing—they’re expanding.

Louisiana: Super Bowl Kicks Off a Tourism Surge

Louisiana didn’t just bounce back—it kicked off 2025 with a bang. Thanks to New Orleans hosting the Super Bowl, hotel revenue soared in the first quarter. RevPAR across the city spiked 21.3%, and average occupancy climbed over 80% during January and February. That momentum didn’t fade—Mardi Gras, music festivals, and cruise departures kept hotels buzzing well into spring.

Local operators say it’s been their best stretch in years. Independent hotels in the French Quarter are fully booked most weekends, and staffing levels are finally back to normal. With a strong events calendar ahead, Louisiana’s hotel sector looks poised to keep winning long after the Super Bowl confetti has cleared.

Ohio: Steady Growth Driven by Regional Travel and Events

Ohio is one of 2025’s most surprising hotel success stories. Cities like Columbus are outperforming expectations with a blend of event-driven demand and strong regional travel. In Q1, Columbus posted a 9.6% increase in RevPAR, while ADR (average daily rate) grew 4.1%. From business conferences to state tournaments, the city’s hospitality scene is buzzing again.

Even mid-size markets like Dayton and Akron are seeing gains, especially in the extended-stay and midscale segments. Hoteliers credit a mix of affordable pricing, loyal local travel, and a packed calendar of events for the upward trend. While the coasts wrestle with recovery, Ohio is showing the rest of the country how to turn consistency into profit.

A Tale of Two Recoveries

The story of the U.S. hotel sector in 2025 isn’t just one of recovery or decline—it’s both. States like New York, California, Hawaii, North Carolina, and Washington are still struggling to find stable ground, facing revenue drops and soft demand. At the same time, states like Florida, Louisiana, and Ohio, along with their high-performing cities—Tampa, West Palm Beach, and Columbus—are riding the wave of recovery, powered by events, emergency travel, and smart planning.

Whether this divide continues—or closes—will depend on how quickly struggling states get the support they need, and how well high-performing states sustain their momentum. But one thing is clear: 2025 is shaping up to be a year of sharp contrasts in American hospitality.

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