The U.S. hotel industry reported negative year-over-year comparisons, according to CoStar’s latest data through 10 January. CoStar is a leading global provider of online real estate marketplaces, information and analytics in the property markets.
U.S. hotels posted 7.9% RevPAR growth during holiday week, with Miami leading at +26.4% while Tampa dropped 19.4%.
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Ontario led declines with RevPAR down 8.1%, while Toronto's drops reflected tough comparisons against Taylor Swift's 2024 tour impact.
Occupancy declined 2.8% marking nine straight months of year-over-year drops, with Tampa hit hardest due to Hurricane Milton displacement effects.
CoStar data shows U.S. hotels faced occupancy decline of 1.6% while ADR rose modestly 0.4%, with New Orleans hit hardest by RevPAR drop of 29.9%.
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Hotels expect ADR to rise 37% and RevPAR to jump 47% in February 2026, though occupancy will trail 2016 levels due to larger supply.
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CoStar data shows occupancy fell 3.2% to 57.2% with Tampa posting the largest declines due to Hurricane Milton displacement effects.
Labor costs are rising 4-5% annually while occupancy drops, with union hotels showing -1% profit conversion versus 25% for non-union properties.
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U.S. RevPAR fell 0.3% in the fortnight ending November 29, but excluding 13 hurricane-impacted markets, RevPAR actually grew 0.9%.
CoStar data shows Tampa suffered steep declines due to 2024 hurricane displacement demand comparisons, while San Francisco led gains with 14.9% RevPAR growth.
HVS analysis highlights strong hotel demand growth driven by $1+ billion in upcoming developments including amphitheater, soccer stadium, and airport expansion.