The U.S. hotel industry was once again in the negative this past July compared to last year, according to information and analytics provider CoStar.

According to the data, which is aggregated from over 90,000 properties across the globe, occupancy, the average daily rate for a room and the revenue per available room (also known as RevPAR), were all down in July compared to July 2024.?

Occupancy was at 68.2 percent, a one percent decrease; the average daily rate was at $161.90, a decrease of 0.1 percent; and the average revenue per available room was $110.37, a decrease of 1.1 percent.?

New York City was the destination with the highest occupancy level, but it was 1.1 percent lower than it was last July.

The news isn¡¯t surprising, especially with a lower international visitor count this year and economic uncertainty caused by the Trump Administration¡¯s tariff wars creating less consumer confidence across the board.?

June saw even greater decreases in occupancy rates and RevPAR.?

CoStar and Tourism Economics revised its 2025-26 U.S. hotel forecast earlier this month, citing underperformance and ¡°elevated macroeconomic concerns.¡± The organizations believe that demand for the full year will drop 0.6 percent, the average daily rate to drop 0.5 percent and RevPAR to drop 1.1 percent.?

The organizations also downgraded projections for 2026, expecting demand to drop by half a point, the average daily rate to drop 0.3 percent and RevPAR to drop another 0.7 percent.?

¡°Unrelenting uncertainty and inflation, coupled with tough calendar comps and changing travel patterns, have caused lower demand,¡± said Amanda Hite, STR president. ¡°Additionally, as the year has unfolded, we¡¯ve seen rate growth converge closer with demand. We expect little change in the economic outlook over the next 18 months, but we are optimistic that once trade talks have concluded and the impact of the budget reconciliation bill comes to fruition, hotel performance will recover.¡±

While the U.S. hotel industry faces unprecedented declines, the rest of the world is booming, including our northern neighbor.?

New data shows that Canada¡¯s hotel industry reported its highest occupancy level since before the pandemic this past July, enjoying a 3 percent year-over-year increase in occupancy, a 5.3 percent increase in the average daily rate and a 8.5 percent increase in RevPAR.??

---

For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.

Topics From This Article to Explore