CoStar: U.S. hotels report slowest ADR, RevPAR growth in 4 years

The U.S. hotel industry reported record-high average daily rate and revenue per available room, but the country’s growth rate was its lowest since the declines of 2020, according to CoStar’s 2024 year-end data.

For the year (percentage change from 2023):

  • Occupancy: 63 percent (flat)
  • ADR: $158.67 (+1.7 percent)
  • RevPAR: $99.94 (+1.8 percent)

Among CoStar’s top 25 markets, New York City reported the highest occupancy level (+3.3 percent to 84.3 percent).

Markets with the lowest occupancy for the year included St. Louis (58.1 percent), Minneapolis (58.7 percent) and Detroit (59.1 percent).

The top 25 markets showed higher occupancy and ADR than all other markets. Markets outside the top 25 saw a 0.5 percent decline in occupancy.

Weekly Numbers

On the positive side of the Martin Luther King Day calendar shift, the U.S. hotel industry reported positive year-over-year comparisons, according to CoStar’s latest data.

For the week of Jan. 12-18 (percentage change from comparable week in 2024):

  • Occupancy: 55.8 percent (+6.7 percent)
  • ADR: $155.81 (+10 percent)
  • RevPAR: $86.93 (+17.4 percent)

Among CoStar’s top 25 markets, San Francisco reported the largest gains in each of the three key performance metrics: occupancy (+35.9 percent to 71.2 percent), ADR (+230 percent to $625.98), and RevPAR (+348.3 percent to $445.85). The market’s performance was lifted by the J.P. Morgan Healthcare Conference.

Ahead of the presidential inauguration, Washington, D.C., saw the second-highest increases in ADR (+52.8 percent to $221.62) and RevPAR (+83.9 percent to $131.16).

The only RevPAR declines were reported in Dallas (-4.7 percent to $78.50) and Oahu (-1.7 percent to $217.99).