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CoStar: Holiday week shows mixed hotel performance

Tampa led the top 25 with occupancy rising 16.3 percent and RevPAR increasing 22.6 percent

CoStar: Holiday week shows mixed hotel performance

U.S. HOTEL PERFORMANCE showed mixed results in the fourth week of December, according to CoStar. Occupancy declined compared to the previous week, while RevPAR and ADR recorded slight increases. Year-over-year metrics remained negative due to the holiday week.

Occupancy fell to 47.7 percent for the week ending Dec. 28, down from 48.9 percent the previous week, a 4.9 percent decline year-over-year. ADR increased to $160.96 from $135.79 week-over-week but was down 1.7 percent compared to last year. RevPAR rose to $76.83 from $66.36 the prior week, though it marked a 6.5 percent year-over-year decrease.


Tampa was the only top 25 market to report a double-digit year-over-year occupancy increase, rising 16.3 percent to 74 percent, with RevPAR up 22.6 percent to $124.36. Houston posted the highest ADR increase, rising 5.6 percent to $97.82.

Nashville saw the sharpest RevPAR decline, down 35.6 percent to $51.68, followed by Atlanta, which dipped 21.7 percent to $40.05.

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Photo by Win McNamee/Getty Images

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Summary:

  • Policy shifts and trade tensions shaped the U.S. hospitality industry.
  • A congressional deadlock triggered a federal shutdown from Oct. 1 to Nov. 12.
  • Visa limitations and the immigration crackdown dampened international travel.

THE U.S. HOSPITALITY industry navigated a year of policy shifts, leadership changes, trade tensions and reflection. From Washington’s decisions affecting travel and tourism to industry gatherings and the loss of influential figures, these stories dominated conversation and shaped the sector.

Policy uncertainty took center stage as Washington ground to a halt. A congressional deadlock over healthcare subsidies and spending priorities triggered a federal government shutdown that began on Oct. 1 and lasted until Nov. 12. The U.S. Travel Association warned the shutdown could cost the travel economy up to $1 billion per week, citing disruptions at federal agencies and the Transportation Security Administration. Industry leaders said prolonged gridlock would further strain hotels already facing rising costs and workforce challenges.

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