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CoStar: U.S. hotel performance sees positive growth in second week of May

San Francisco posted the highest YOY increases in all three key performance metrics

CoStar: U.S. hotel performance sees positive growth in second week of May

U.S. HOTEL PERFORMANCE improved in the second week of May compared to the previous week, with positive year-over-year comparisons, according to CoStar. Key metrics such as occupancy, RevPAR, and ADR all increased week-over-week.

Occupancy rose to 66.1 percent for the week ending May 11, up from 64.4 percent the previous week, representing a 2.1 percent year-over-year increase. ADR increased to $162.14 from $159.97, a 4.4 percent rise compared to last year. RevPAR reached $107.24, up from $103.09 the prior week, showing a 6.6 percent increase compared to the same period in 2023.


Among the top 25 markets, San Francisco reported the highest year-over-year increases in each of the three key performance metrics: occupancy increased by 20.6 percent to 79.3 percent, ADR rose by 54.5 percent to $313.13, and RevPAR increased by 86.3 percent to $248.28. The market’s performance was boosted by the RSA Conference.

Boosted by NPE2024, Orlando saw the second-largest lifts in occupancy, up 18.6 percent to 75.7 percent, and RevPAR increased by 28.9 percent to $160.81.

The steepest RevPAR declines were observed in Philadelphia, dropping by 27.1 percent to $101.16, and in Nashville, which fell by 9.2 percent to $133.09.

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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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