U.S. Hotel Industry Experiences Positive Growth in December; Tampa and New York City Lead the Pack

• According to CoStar’s data for the week ending December 21, 2024, the U.S. hotel industry reported a year-over-year increase in occupancy, average daily rate (ADR), and revenue per available room (RevPAR). 
• Tampa demonstrated the highest increase in occupancy and RevPAR, while New York City reported the highest ADR. Oahu Island was the only major market to experience decreases in all three key metrics.

According to data provided by CoStar, a leading online real estate marketplace, the U.S. hotel industry saw substantial year-over-year growth in the week leading up to December 21, 2024. The increase can be attributed to the Hannukah calendar shift and the compressed business travel period between Thanksgiving and Christmas, despite the seasonal slowdown usually experienced.

The industry reported an 11.4% increase in occupancy to 48.9%, a 2.7% increase in the average daily rate (ADR) to US$135.79, and a 14.3% increase in revenue per available room (RevPAR) to US$66.36.

Among the top 25 markets, Tampa saw the greatest increase in occupancy (37.9%) and RevPAR (63.8%), mainly due to demand stemming from hurricane recovery. New York City reported the highest growth in ADR at 20.1%, reaching US$351.39.

However, Oahu Island was the only major market to record decreases in all three key metrics: occupancy declined by 4.0% to 66.4%, ADR decreased by 16.7% to US$259.60, and RevPAR fell by 20.0% to US$172.27.