Hotel Transient and Group Demand Slipped Week Ending March 15, Says CoStar

Industry sees negative year-over-year overall results >>

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March 24, 2025

Transient demand and average daily rate (ADR) at US hotels declined 3.8% and 1.4%, respectively for the week ending March 15, according to the latest report from CoStar, a data and analytics provider. The Top 25 Markets saw a larger demand decline (down 5.8%) versus the remainder of the country (down 3.6%). ADR decreases were more modest, with Top 25 Markets down 1.7% and the remainder of the country down 1.3%, respectively. Only three of the Top 25 Markets saw strong transient demand: Houston (up 19.9%), Nashville (up 6.5%) and Dallas (up 5.8%).

Group demand in luxury and upper upscale hotels decreased for the second consecutive week, down 1.7%, while ADR rose 3.7%, according to the most recent report from STR, a part of the CoStar Group.

Markets outside the Top 25 drove the group decline, falling 1.5%, while the Top 25 Markets saw group demand increase 1.4%. ADR was healthy in the Top 25 Markets, increasing 5.7%, while the rest of the country saw ADR increase by 2.3%. Detroit, New Orleans, St. Louis, San Francisco and Philadelphia all saw robust group performance, with demand up over 20% along with strong ADR gains for all except New Orleans.

The US hotel industry overall reported negative year-over-year comparisons, according to CoStar’s latest data through March 15. The results from March 9 to15 were: (percentage change from comparable week in 2024):

Occupancy: 64.2% (down 3.5%)
ADR: $162.49 (down 0.7%)
Revenue per available room (RevPAR): $104.36 (down 4.2%)

Among the Top 25 Markets, San Francisco saw the highest occupancy lift (up 6.6% to 63.7%). Houston reported the largest increases in ADR (up 13.8% to $137.98) and RevPAR (up 16% to $97.21).

The steepest RevPAR declines were seen in Anaheim (down 27.8% to $149.51) and Seattle (down 15.5% to $101.77), the latter due to a calendar shift of the Aerospace & Defense Suppliers Summit.

“We also can not underestimate the impact of increased uncertainty on consumers,” said the report. Falling consumer sentiment, it noted, was highlighted in a recent statement from Federal Reserve Chairman Jerome Powell. This headwind, said the report, could impact hotels as they head into the peak leisure travel season.