The latest data from hotel analytics firm STR (a CoStar Group brand) shows that United States hotel occupancy declined for the ninth consecutive month in November, dropping 2.8% year over year to a 57.9% occupancy rate.
Revenue per available room also continued a downward trend, declining by 2.3% to $88.97. The only metric to increase in November was average daily rate (up 0.6%).
Our Analysis: Occupancy Rates Reflect Larger Issues in Attracting Visitors
The downward slide of U.S. hotel occupancy for the majority of 2025 likely reflects the growing reluctance many international travelers are feeling about visiting the country. Ongoing political issues — including an expanding list of travel bans, new visitor fees (such as the $250 “visa integrity fee” introduced in 2025 and this year’s increased $100 surcharge at national parks for non-U.S. residents) and plans for increased scrutiny of foreign tourists (including a proposal to look at five years of visitors’ social media history) — are among the reasons the U.S. is already seeing a downturn in inbound tourism, a trend that’s likely to continue to cost the country valuable tourism dollars for the foreseeable future.
Fast Facts: More Hotel Performance Data
- Markets with the lowest occupancy in November included Minneapolis (51.9%) and Detroit (55.9%).
- Unsurprisingly, the top 25 markets (destinations with the highest percentage of hotel rooms across the country) showed higher occupancy and average daily rates than all other markets.