• 2024 Boom, 2025 Adaptation: The U.S. hotel industry had a record year in 2024, with 2025 showing mixed results but a focus on market adaptation.
• Strong State Performance: Florida, Texas, and Hawaii’s luxury sector demonstrated significant strength and growth in the first quarter of 2025.
• Market Adjustments: Major markets like New York and California experienced declines in some key metrics as they adjust to new travel dynamics.
• National Trends: Despite a drop in hotel bookings, nationwide RevPAR (Revenue Per Available Room) increased, indicating higher room rates are supporting the industry’s health.

Following a remarkable year of growth in 2024, the U.S. hotel industry is showcasing its dynamic resilience and strength in 2025. While the market is adapting to new travel trends, several key states are leading the way with impressive and steady performances, highlighting the enduring appeal of American tourism.

Florida continues to be a shining star, with destinations like Orlando and Tampa seeing wonderful growth in visitor numbers and hotel occupancy. Texas is also demonstrating robust health, with its major cities thriving on the back of a strong business travel and conference sector. Meanwhile, Hawaii’s luxury market is proving incredibly resilient, attracting travelers seeking premium tropical getaways, and states like Illinois and Colorado maintain their solid, steady appeal.

Even in major markets like New York and California, which are navigating shifts in international demand, the outlook remains positive. These iconic destinations are actively adapting their strategies and continue to be top-of-mind for travelers worldwide. The national trend of rising revenue per available room (RevPAR) further illustrates the industry’s healthy ability to adapt, with hotels successfully optimizing rates. Overall, the first quarter of 2025 paints a picture of a vibrant and adaptable hospitality sector, well-positioned for continued success.