2025 Hotel Performance Benchmarks: How Your Property Measures Up

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TL;DR: Quick Facts on 2025 Hotel Performance Benchmarks
  • U.S. hotels are stable and rate-focused: National averages show 63.4% occupancy, $162 ADR, and $102.78 RevPAR as rate strength drives revenue growth
  • Urban markets are seeing strong rate growth, particularly in convention-heavy cities like New York and Boston.
  • Leisure-driven regions, such as the Southeast and West, are buoyed by sustained domestic travel demand.
  • Midscale and regional properties face tighter margins, with occupancy pressure from new inventory and limited group travel recovery.
  • Luxury and lifestyle hotels are driving ADR and RevPAR growth due to traveler demand for immersive experiences and premium service.
  • Midscale and economy segments continue to experience softening, with limited group and long-stay business impacting average performance.
  • Upscale full-service hotels show healthy RevPAR recovery, signaling stability in urban and business travel markets.
 
2025 Hotel Performance Benchmarks

 

Benchmarking is essential for any hotelier serious about growth. Comparing your results against 2025 hotel revenue benchmarks helps reveal where you’re winning, where you’re behind, and how to strengthen your pricing strategy.

The following data summarizes the latest industry insights from AHLA, STR/CoStar, CBRE, and OysterLink—the most trusted authorities in hospitality performance analysis.

 
National Performance Snapshot

 

Across the U.S., the hotel sector continues to show steady recovery and normalization in 2025.

 

  • Occupancy: 63.4% nationwide[^1]

  • ADR: $162.16[^4]

  • RevPAR: $102.78[^3]

These 2025 RevPAR benchmarks represent modest growth from 2024, driven by stable demand and disciplined rate strategies[^1]. Hotels that maintained pricing power rather than chasing volume are leading the pack in revenue growth.

 
Regional Hotel Performance Benchmarks

Region

Occupancy (%)

ADR ($)

RevPAR ($)

Highlights

New England

64–68

170–210

109–130

Boston’s mix of corporate and leisure demand drives strong summer performance[2][3]

Mid-Atlantic

62–66

165–190

108–124

NYC remains a national leader with 84% occupancy and $314 ADR[4][1]

Southeast

64–67

150–185

100–125

Florida and the Carolinas benefit from group and leisure travel[2]

Midwest

59–64

130–160

80–108

Leisure travelers continue to fill the gap left by slower group business[5]

Southwest

60–65

140–170

89–112

Event-driven markets like Austin and Phoenix perform above expectations[6]

West

62–67

160–210

99–133

San Francisco and Los Angeles maintain top-tier ADR and RevPAR[6][1][2]

 

Across regions, average hotel occupancy 2025 trends show stability with moderate rate growth. Urban centers and destination markets continue to lead, while drive-to and regional properties maintain dependable performance.

 
Benchmarks by Property Type

Property Type

Occupancy (%)

ADR ($)

RevPAR ($)

Highlights

Lifestyle Hotels

65–72

190–280

124–202

Rate growth driven by design, loyalty programs, and strong brand appeal[1]

Luxury

Resorts

70–75

300–600

210–450

Leisure demand keeps resort performance above national averages[1]

Upscale Full-Service

67–72

180–225

120–155

Convention and corporate travel help sustain recovery[1]

Midscale

58–64

110–140

70–89

Drive-to travel supports occupancy, though ADR remains limited[5]

Economy

52–58

80–110

44–63

Rate compression and long-stay business shape performance[5]

 

Luxury and lifestyle hotels continue to outperform, fueled by travelers prioritizing quality and experience. Midscale and economy properties are under rate pressure as group and long-stay demand remains soft.

 
Turning Benchmarks into Strategy

 

Benchmarks aren’t static—they’re tools for action.

  1. Measure your true position. Compare your ADR and RevPAR against hotels in your region and class to understand relative strength.

     

  2. Focus on efficiency. If your property’s occupancy is healthy but RevPAR lags the average hotel RevPAR, evaluate your rate structure and booking mix.

     

  3. Leverage compression events. Identify peak demand periods and adjust pricing to capture rate upside when competitors fill early.

     

  4. Balance rate and pace. Sustained ADR growth often yields stronger long-term gains than filling rooms at a discount.

     

With TakeUp, hoteliers gain the intelligence to act on this data in real time. Our platform combines AI-powered insights with human revenue expertise to help you optimize rates, understand guest price sensitivity, and increase topline performance.

 
The Bottom Line

 

The 2025 hotel occupancy benchmarks and RevPAR data show a market that rewards precision. Growth isn’t coming from luck—it’s coming from smarter, data-informed pricing decisions.

 

Hoteliers who continuously compare their performance to national and regional standards can better align strategy, adapt to changing conditions, and capture revenue opportunities ahead of competitors.

 

TakeUp helps you turn those insights into action, ensuring your property is priced to perform in any market.

 
Frequently Asked Questions: 2025 Hotel Performance Benchmarks

 

1. What is the average hotel RevPAR in 2025?

 

The average U.S. hotel RevPAR in 2025 is $102.78, according to data from STR, AHLA, and CBRE[1][3][6]. This figure reflects steady growth from 2024, supported by consistent ADR gains and a nationwide occupancy rate of 63.4%.

 

2. What are the 2025 hotel occupancy benchmarks by region?

 

Regional occupancy varies from about 59% in the Midwest to nearly 68% in New England and the West. Major urban markets like New York City (84%) and Boston (68%) outperform national averages due to strong corporate and event demand[1][2][4].

 

3. Which hotel segments are performing best in 2025?

 

Luxury resorts and lifestyle hotels are leading performance this year. These segments average 70–75% occupancy and RevPAR between $210 and $450, driven by high ADRs and ongoing demand for experiential travel[1].

 

4. How should hoteliers use these benchmarks to improve performance?

 

Benchmarks help hotels understand where they stand in their market. Comparing your ADR, occupancy, and RevPAR against regional and class averages reveals pricing opportunities, demand gaps, and rate inefficiencies. Using a dynamic pricing platform like TakeUp allows hoteliers to act on those insights in real time.

 

5. How often should hotels review and update their benchmark comparisons?

 

At minimum, hotels should evaluate performance against industry benchmarks quarterly and regionally adjusted data monthly. Frequent review helps identify shifts in pace, demand, and rate competitiveness—allowing teams to make timely strategy adjustments[2][6].

 

Sources

[1]: AHLA 2025 State of the Industry Report https://www.ahla.com/sites/default/files/25_SOTI.pdf

[2]: STR/CoStar National and Regional Data Releases https://str.com/press-release/us-hotel-performance-may-2025

[3]: STR Market Trend Reports (Hotelogix, Cushman & Wakefield) https://blog.hotelogix.com/adr-hotel-benchmark/

[4]: OysterLink U.S. Hospitality Industry Statistics, October 2025 https://oysterlink.com/spotlight/us-hospitality-industry-statistics/

[5]: STR/CoStar Midwest and Drive Market Analysis https://str.com/press-release/us-hotel-performance-june-2025

[6]: CBRE Global Hotel Outlook H2 2025 https://www.cbre.com/insights/reports/h2-2025-global-hotel-outlook

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