2025 Lodging Tax Report - USA

Since room sales generate lodging tax revenues, an overview of hotel market trends provides insight into the industry’s current and future fiscal impacts. As documented in our 2024 HVS Lodging Tax Study, the national lodging market has experienced recent growth in average daily room rates and revenue per available room. However, occupancy levels have remained relatively flat. The Average Daily Room Rate (“ADR”) represents the average revenue earned for each room rented in a hotel. Revenue per available room (“RevPAR”), the product of ADR and occupancy rate, is a standard industry metric that combines the effects of occupancy and room rates on overall revenue performance. ADR and RevPAR increased in 2024 but has seen slower growth through the first eight months of 2025 compared to the same period in 2024. The figure below compares year-over-year growth in the national lodging market from 2023 through August 2025.

Immersive Hospitality: Redefining the Guest Experience

Immersive experiences are not entirely new to hospitality and leisure—theme parks, destination hotels and resorts, and cultural attractions have long found ways to draw guests into unique worlds. What is changing is how properties are increasingly using technology to push those experiences further, creating spaces that blur the lines between the physical and digital and redefine what guests expect from leisure destinations.

Can Los Angeles "Digest" the Olympics?

In 2028, Los Angeles will become the center of global attention as it hosts the XXXIV Summer Olympic Games. Although the event is still several years away, in the tourism and hospitality industry, time moves differently. Preparing for such a large-scale event isn’t a matter of “later” - it’s a strategic priority for today.

Family Experiential Resorts Finding Success

As travel rebounds from the disruption of the COVID-19 pandemic, family travelers are increasingly seeking unique and memorable experiences when selecting a destination. While this trend is not new, it has gained momentum post-pandemic, as many travelers are opting for indoor waterpark resort getaways in addition to other travel. This increase in demand prompted action from resorts as many reevaluated their strategies, enhancing amenities and activities – whether through new developments, renovations, or expansions – to cater to evolving traveler preferences.

Soft Brands – A Third Alternative

Historically, hotel owners have had the option to either affiliate with a known brand or operate independently. Affiliating with a brand provided access to a reservation system, loyal customers, communal marketing programs, a known identity among consumers, and a sense of stability within the finance and investment community. Brand affiliation, however, comes with costs. Owners pay a variety of fees for royalty, marketing, reservation, and guest loyalty programs, and need to conform to facility, service, and operating standards.

Checking the Changes to Hawaiian Luxury with the Halekulani

For those who are unfamiliar, the Halekulani is (pardon the alliteration) a hallmark of Hawaiian hospitality, with the property acting as the keystone for the densely populated beach tourism area of Waikiki in Honolulu. At 453 rooms and suites, the luxury hotel has a time-honored history, first established in 1917 and now comprising five buildings and three signature restaurants, all with an unparalleled onsite experience. Further to this article, the property closed completely for an 18-month renovation at the outset of the pandemic in 2020.

Creating the Entertainment Capital within the Entertainment Capital of the World

Las Vegas is a city that lives on reinvention to keep drawing ever-larger crowds to this oasis in the desert that, for full transparency, wouldn’t even exist if it weren’t for the entertainment industry. While the world’s entertainment capital started out with gaming, shows and conventions, in recent decades it has also become a culinary mecca and now a world-class sports destination.

Extended-Stay Hotels Continue to Gain in Popularity

The pandemic and hybrid work arrangements have generated strong demand for longer hotel stays, increasing the popularity of cost-effective extended-stay hotels and making them one of the fastest growing segments in hospitality. With higher margins and lower development costs than full-service hotels, extended-stay properties have the potential to generate higher returns on investment. As a result, banks are more likely to provide funding for what are perceived to be lower-volatility, higher-return hotels, particularly those associated with well-established brand families. We expect capital to continue flowing into this segment as long as outsized returns exist.