The May U.S occupancy rate fell again year over year, according to hotel analytics firm STR, while average daily rate and revenue per available room each increased slightly.
U.S. occupancy in May declined 0.7 percent year over year to 65.3 percent, the third straight month of such a decline after five consecutive months of increase, according to STR. May, however, marks the cleanest comparison of the three months following the shift in the Easter holiday from March in 2024 to April in 2025.
The U.S. ADR in May was $162.72, up 0.8 percent year over year, while RevPAR increased 0.1 percent to $106.30.
STR parent company CoStar and Tourism Economics earlier this month downgraded their U.S. hotel forecast for both full-year 2025 and 2026, citing “elevated macroeconomic concerns” and first-quarter hotel performance. STR separately last week in a research note said June occupancy appears higher than last year’s, and that softer July and August occupancy outlooks still could be a consequence of delayed travel decisions fueled by economic uncertainty.
STR said its top 25 markets “showed higher occupancy and ADR than all other markets.”
As it did in April, New York City registered the highest May occupancy rate among STR’s top 25 U.S. cities at 87.9 percent, down 1 percent year over year. New Orleans posted the lowest occupancy rate at 60.1 percent, followed by Houston at 61.4 percent.
RELATED: STR April 2025 performance figures
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