Hurricanes, Shutdown Led to Weaker US Hotel Demand in October 2025

CoStar has released its October 2025 report on US hotel performance, showing that revenue per available room (RevPAR) fell 0.9 percent compared with October 2024. Although this marks the fifth consecutive monthly decline, it is also the smallest drop in that period.

Occupancy decreased by 1.6 percent, marking the sharpest of eight straight months of occupancy losses nationwide.

Average daily rate (ADR) rose 1.5 percent in October, the strongest increase in six months, but still well below the pace of inflation.

Much of October was affected by the US government shutdown, which lasted from October 1 to November 12. During those 43 days, hotels saw demand fall by 2.2 million room nights compared with the same period last year. However, even in the 43 days before the shutdown, demand had already dropped by 1.5 million room nights.

CoStar notes that there are also 13 markets still recovering from the damage caused by Hurricanes Helene and Milton the previous year. Those areas alone lost more than 1 million room nights of demand in and made up more than half of the national decline in October 2025.

If the hurricane-impacted markets are excluded, US hotels would have recorded only a slight RevPAR decline of 0.1 percent.

Also recently, CoStar and Tourism Economics downgraded their outlook for the US hotel industry in 2025 and 2026. They now expect RevPAR to fall 0.4 percent in 2025, marking the first annual decline since 2020.

Photo by Anna Shipman on Unsplash