In 2025, annual U.S. hotel occupancy and revenue per available room (RevPAR) fell year over year for the first time since 2020, according to new data from CoStar. The year closed with occupancy at 62.3%, down 1.2% when compared to 2024; average daily rate (ADR) finished at $160.54, up 0.9% over 2024; and revenue per available room (RevPAR) was $100.02, down 0.3% year over year.
The industry is projecting slow but stable growth in 2026. ADR is anticipated to increase 1% year over year in 2026, while average occupancy is estimated to be at 62.1%. RevPAR is forecast to rise 0.6% in 2026, and it is believed that supply growth will likely outpace demand.
While leisure travel demand is steady, corporate and international inbound travel has been slower to recover. In fact, the net cross-border travel imbalance continues to widen, with the U.S. remaining a “net exporter” of travelers, down sizably compared to 2019. Several events, such as the FIFA World Cup, are expected to bring a record number of visitors to the U.S., Canada, and Mexico, but it’s group demand that will be a crucial component to domestic industry stability in 2026.
Even if corporate and international inbound demand returns, it is believed that the U.S. hotel industry will still have lower-than-ideal transient and static corporate travel demand. As a result, hotels are going to be looking to get business on the books early to help drive rate. In addition, it’s anticipated that the group booking window and small corporate group booking window will remain short-term. When looking at supply, new hotel room construction recently hit a five-year low; however, development activity is projected to stabilize, with supply growing across all chain scales.
According to Eurostat, in 2025, the estimated number of nights spent at tourist accommodation establishments in the EU reached 3.08 billion, exceeding the previous year by 61.5 million, or 2%. The growth in tourism nights was mainly driven by an increase in nights spent by international guests.
HVS reports that European RevPAR growth was positive in 2025, averaging 3%. While this was less than the post-pandemic surge of 2024, the figures show the resilience of leisure demand. Southern Europe and primarily Spain, Greece, and Portugal led performance. Looking ahead at 2026, a projected uptick in luxury supply is projected to stabilize the RevPAR gains seen in the high-end sector, leading to a more normalized performance curve in the EU.