U.S. Hotel Industry Faces Declines in Occupancy and Revenue Amid Event Comparisons, September 2025

U.S. Hotel Industry Faces Mixed Results Amid Occupancy and Revenue Declines in September 2025

Washington D.C., USA – According to recent data from CoStar, the U.S. hotel industry showed significant challenges for the week ending 13 September 2025, marked by declines in key performance metrics such as occupancy rates and Revenue per Available Room (RevPAR). While some areas saw slight growth in Average Daily Rates (ADR), the overall trend was negative, with several cities, particularly Anaheim and Washington D.C., experiencing notable declines.

A Mixed Performance Across the U.S.

For the week of 7-13 September 2025, U.S. hotels reported a 1.8% decline in occupancy, which fell to 65.4%. RevPAR also dropped by 1.7%, reaching USD 106.43, while ADR saw a modest 0.1% increase, amounting to USD 162.71. Despite this slight uptick in ADR, the overall performance was affected by lower occupancy and declining revenue metrics in several key cities.

The data underscores the continued volatility in the U.S. hotel sector, with some cities showing resilience while others struggle to maintain demand amidst fluctuating economic conditions and seasonal changes.

Anaheim: A Tough Week for Hotel Operators

Anaheim, California, faced the most severe declines in performance during the period. Occupancy fell by 15.4%, dropping to 70.6%, while ADR decreased by 10.5%, bringing the average rate down to USD 212.16. RevPAR saw the largest drop, plummeting by 24.2% to USD 149.80.

These significant declines are attributed to the comparison with the RE+ 24 event held the previous year. The major conference held in Anaheim in 2024 had driven a spike in hotel demand, but without this event in 2025, hotel operators faced considerable challenges in maintaining high occupancy and rates.

Anaheim’s situation highlights the volatility of markets heavily reliant on event-driven demand, where a single large event can have a disproportionate impact on hotel performance. The absence of such events can lead to a dramatic fall in occupancy and revenue, as evidenced in the recent results.

Washington D.C.: Seasonal Fluctuations and Fewer Events Impact Performance

Washington D.C. also experienced notable declines in hotel performance during the same period. The city saw an 11.7% drop in occupancy, falling to 67.8%, while ADR decreased by 7.4%, reaching USD 198.85. The sharpest decline came in RevPAR, which fell by 18.3% to USD 134.77.

Several factors contributed to Washington D.C.'s weak performance, including seasonal fluctuations and fewer major events and conventions during the period. As a city that caters to both business and leisure travelers, Washington D.C. often experiences dips in performance when the volume of conferences and other events decreases, which was the case during this period.

Broader Trends Across U.S. Markets

Across the top 25 hotel markets in the U.S., 16 regions reported a decline in occupancy during the week, highlighting the challenges faced by many cities in a highly competitive hospitality landscape. While some regions have maintained strong demand, others have struggled with fluctuating visitor numbers due to economic uncertainty and the shifting nature of global travel trends.

Impact on U.S. Tourism and Hotel Demand

For both tourists and hotel operators, the mixed results from U.S. hotel performance suggest that consistent growth may be harder to achieve in the near term. While ADR has seen a slight increase in some markets, the decline in occupancy and RevPAR across major cities signals that overall demand might not be as strong as in previous years.

Travelers could benefit from steady pricing in certain areas, but availability may be limited during high-demand periods, especially in cities with large-scale events or peak tourist seasons. The experience of cities like Anaheim and Washington D.C. illustrates the volatility of hotel markets tied closely to annual or large-scale events, where demand can swing dramatically based on the event calendar.

Tips for Travelers Navigating the U.S. Hotel Landscape

As the U.S. hotel industry grapples with fluctuating performance, travelers are advised to stay informed about regional trends and seasonal variations. With cities like Anaheim and Washington D.C. showing volatility, it's essential for tourists to understand the underlying factors that contribute to these fluctuations, such as major events, local economic conditions, and seasonal changes.

Travelers seeking the best value may find that booking well in advance or exploring alternative accommodations, like vacation rentals, could offer better options during peak demand times. Additionally, understanding that rising ADR may offset lower occupancy rates in some cities can help travelers plan their budgets more effectively.

Looking Ahead: The Future of U.S. Hotels and Tourism

The week of 7-13 September 2025 served as a reminder of the ongoing challenges in the U.S. hotel industry, with certain cities grappling with steep declines while others held steady. Anaheim and Washington D.C. are prime examples of how market volatility, often driven by event-dependent demand, can significantly impact hotel performance.

As tourism professionals and travelers navigate these uncertainties, staying flexible with travel plans, booking early, and keeping an eye on local market trends will be key to securing the best deals and ensuring a smooth travel experience.

The outlook for the U.S. hotel industry remains mixed, but with strategic planning and awareness of market dynamics, both operators and travelers can adapt to the shifting landscape and continue to thrive in an evolving tourism environment.