America’s Hospitality Rush Fades as Travelers Hit Pause

America’s hotel recovery has flatlined. CoStar and Tourism Economics now expect revenue per available room (RevPAR) to fall 0.1% in 2025 — a sharp reversal from January’s forecast of 1.8% growth. After years of post-pandemic gains, the hospitality sector is now hitting a wall as demand stalls.

• HiltonHLT
  reported a 2.3% drop in US RevPAR during Q3, while economy hotel chains like Days Inn and Econo Lodge saw a 3% decline in revenue compared to last year.
• Weekday occupancy remains weak as average US hotel occupancy has fallen year-over-year for seven straight months through September.

Checkout time: International travel to the US isn’t expected to return to 2019 levels until 2029 — four years later than previously projected — as negative sentiment toward the US continues to dampen arrivals. HyattH

recently cut about 5% of its corporate staff after Marriott’sMAR

16% headquarters reduction last year, signaling deeper restructuring ahead. The industry now pins its hopes on 2026 events like the World Cup and America’s 250th anniversary to revive momentum, though STR president Amanda Hite warns, “The second half of the year is going to be tough.”