Home»HOTEL NEWS» US Hotel Industry Sees Mixed Performance in Week Ending July, St. Louis Showing Growth Amid Declines
Sunday, August 3, 2025
The latest data from CoStar, a leading provider of real estate analytics, paints a challenging picture for the US hotel industry for the week ending July 26, 2025. Despite recovery signs in certain markets, the overall year-over-year performance indicates slight declines in key metrics such as occupancy, average daily rate (ADR), and revenue per available room (RevPAR). These results reflect a mix of ongoing challenges in the hospitality sector, as well as regional variations across the country.
The overall trend of negative growth in hotel performance for the week compared to the same period in 2024 highlights the ongoing uncertainty facing the industry. However, the report also sheds light on specific markets, such as St. Louis, which recorded positive movement, contrasting the general trend. This article will delve into the details of the data and explore the implications for both hotel operators and travelers.
US Hotel Industry Performance Overview For the week ending July 26, 2025, the US hotel industry experienced slight declines in all key performance metrics compared to the same week in 2024. The following are the reported figures for occupancy, ADR, and RevPAR:
Occupancy: 71.5% (-0.7%)
Average Daily Rate (ADR): $164.88 (-0.1%)
Revenue per Available Room (RevPAR): $117.88 (-0.8%)
These figures indicate that while the hotel industry continues to experience a relatively strong level of occupancy, the overall revenue generated per available room remains under pressure. The decline in ADR by 0.1% and RevPAR by 0.8% suggests that hotels are still grappling with pricing pressures, particularly as travelers remain cautious about their spending.
Despite the slight year-over-year declines, the overall occupancy rate remains relatively healthy, indicating that demand for hotel accommodations is still stable, albeit with less momentum than in previous periods. However, challenges persist, especially in markets that are struggling to recover from unique regional disruptions.
St. Louis: A Bright Spot Amid the Decline While many US markets have seen a decline in key performance metrics, St. Louis stands out as a notable exception. The city reported the highest occupancy increase among the Top 25 Markets for the week, with a 5.7% year-over-year rise in occupancy, bringing the rate to 70.9%. This increase can be attributed to a combination of factors, including targeted marketing campaigns, local events, and the city’s growing appeal as a mid-sized destination for both business and leisure travelers.
St. Louis has been positioning itself as a vibrant hub for tourism, with increased efforts to attract more visitors through cultural and recreational offerings. The strong occupancy growth in the city suggests that these efforts are beginning to pay off, as it bucks the overall downward trend seen across much of the US hotel industry.
The performance of St. Louis highlights the importance of localized factors in the hotel industry. While national trends may show overall stagnation or slight declines, specific markets are capable of outperforming the broader trends due to strategic initiatives, favorable local conditions, and the adaptability of hotel operators.
Houston: A Struggling Market On the opposite end of the spectrum is Houston, which recorded the steepest declines in all three major performance indicators. The city saw a significant drop in occupancy, down by 19.7% to 61.1%. The ADR also fell by 7.7%, reaching $117.02, while RevPAR saw the sharpest decline, down by 25.9% to $71.54.
These declines are primarily attributed to the elevated displacement demand that followed Hurricane Beryl in 2024. Many hotels in Houston experienced a surge in bookings due to the temporary displacement of residents and business travelers during and after the hurricane. As the region returned to normal, this temporary spike in demand was not sustained, leading to a sharp decrease in performance metrics.
Houston’s struggles serve as a reminder of how external factors, such as natural disasters and regional disruptions, can significantly impact hotel performance. As recovery efforts continue, it is essential for operators in affected regions to manage expectations and plan accordingly to regain stable occupancy levels.
Regional Variations and Market Adaptations The US hotel industry is highly diverse, and performance trends can vary significantly from one region to another. In addition to the notable performances in St. Louis and Houston, other markets are showing mixed results. Cities with strong business travel demand, such as New York and Los Angeles, are likely to continue to perform relatively well, while more leisure-focused destinations might experience fluctuations depending on seasonal trends and consumer confidence.
The key to navigating this complex landscape will be for hotel operators to adapt their strategies based on local demand drivers. With the recovery from the COVID-19 pandemic continuing to evolve, it is crucial for hotels to remain agile, adjusting pricing, marketing, and service offerings to meet changing consumer needs.
Looking Ahead: A Challenging Road for US Hotels The US hotel industry faces a mixed outlook as it continues to recover from the disruptions of the past few years. While key markets such as St. Louis show promising growth, other cities like Houston are grappling with the aftermath of regional challenges. The slight year-over-year declines in occupancy, ADR, and RevPAR indicate that the road to full recovery will be slow and uneven, with some regions bouncing back more quickly than others.
For hotel operators, the focus must remain on improving efficiency, maintaining high service standards, and responding swiftly to emerging trends. Additionally, keeping track of local market conditions will be vital for adapting to the demands of travelers in a post-pandemic world. As the industry continues to adjust to changing travel patterns, operators will need to stay ahead of the curve by focusing on delivering value to their guests while managing operational costs.
Conclusion The latest data from CoStar paints a picture of a hotel industry in transition, facing both challenges and opportunities. While national trends indicate slight declines in key performance metrics, specific markets like St. Louis show that targeted strategies and regional initiatives can yield positive results. Meanwhile, cities like Houston remind us that external factors such as natural disasters can have a long-lasting impact on hotel performance.
As the US hotel industry navigates these challenges, the focus must remain on adaptability, efficiency, and customer satisfaction. The ability to respond to local demands and capitalize on emerging trends will be crucial to maintain profitability and sustaining long-term growth. With the hospitality sector continuing to recover, it is clear that the industry is in a period of flux, but the potential for success remains strong in markets that can adjust and innovate effectively.
Emirates and IHG Hotels & Resorts sign MOU to explore collaboration, incentives and support travel needs of SMEs
The Voice of Chandigarh News:
Emirates and IHG Hotels & Resorts (IHG) have signed a Memorandum of Understanding (MoU) to explore joint collaborations on programmes designed to meet the travel needs of Small and Medium Enterprises (SMEs) across global markets. The signing ceremony was attended by Nabil Sultan, Emirates’ Executive Vice President for Passenger Sales and Country Management; Matthew Jones, VP-USA, Emirates; Ashraf Baytam, Senior Manager Global Business Travel, Emirates; and Ryan Plemmons, Vice President, Global Sales Strategy, IHG Hotels & Resorts.
Together, Emirates and IHG will explore ways to reach and engage with SMEs through value-added benefits and exclusive rewards to facilitate business travel. The hotel group will provide enhanced travel incentives and seamless integration with its extensive portfolio of hotels and resorts around the globe.
Present at the signing ceremony was Nabil Sultan, Executive Vice President for Passenger Sales and Country Management, who commented: “With the SME segment playing a crucial role in fostering economic growth and creating jobs, Emirates is committed to supporting them with solutions and value-added propositions to meet their travel needs. We are pleased to collaborate with the leading hotel group, IHG Hotels & Resorts, to explore programmes that will be mutually beneficial to our valued customers. Together we aim to extend valuable benefits to our customers in the SME sector, while expanding our customer base in this very important segment.”
Mark Sergot, SVP, Global Sales, IHG Hotels & Resorts, said: “We are thrilled to partner with Emirates to redefine business travel for Small and Medium Enterprises worldwide. This collaboration underscores our shared commitment to delivering exceptional value, seamless experiences, and exclusive rewards tailored to the unique needs of SMEs. By combining IHG’s hospitality expertise with Emirate’s global connectivity, we are unlocking new possibilities to empower businesses and drive growth across international markets.”
London, United Kingdom – A modern hotel brand, TRIBE Hotels, part of IHG Hotels & Resorts, continues to grow further into Europe. IHG is now set to open multiple new hotels in Krakow, Paris, Budapest, Ljubljana and other major cities. TRIBE is renowned for its design-oriented hospitality and is known to offer modern, tiered, and affordable hotels. The speedy growth of this brand shows a soaring demand for excellently designed and affordable functional hotels for business and leisure travelers.
We’ve TRIBE Krakow Old Town now open, and Paris, Budapest, and Ljubljana as future projects, we can see the rapid development of TRIBE across the the rest of Europe, providing travelers modern and stylish hotels that showcase local culture.
A Brand Focused on Design for Today’s Travelers
TRIBE Hotels was launched in 2017 and has been committed to offering comfortable and functional design stays that are convenient and stylish for today’s traveler. Every hotel incorporates local and cultural design elements to give guests a refreshing yet modern feel. Every TRIBE hotel integrates local design elements to give a modern yet authentic feel. This approach, together with a design focus and a minimalist approach, guarantees that all TRIBE hotels deliver a remarkable stay.
New Openings Across Europe
TRIBE Hotels is further expanding their presence in Europe with the opening of new locations in key markets:
TRIBE Krakow Old Town, Poland: Opened in July 2025, this property is inspired by the cult TV show Twin Peaks, reflecting the cinematographic style of David Lynch. The hotel has 168 guest rooms, a coffee bar, a pan-Asian restaurant, a wellness area, and two meeting rooms. Moreover, the guests can relish the city and global local design while savoring Krakow’s rich history.
TRIBE Budapest Airport, Hungary: Located adjacent to Liszt Ferenc International Airport, this hotel, opened in May 2025, offers 167 guest rooms, five meeting rooms, a rooftop bar, and a fitness center. As one of the early adopters of BREEAM certification, one of the first BREEAM-certified Hotels in Hungary, it focuses on sustainable design while prioritizing guest comfort.
TRIBE Paris Pantin, France: This property is the newest addition to TRIBE, having opened in June 2025, and is situated pivot near La Villette’s cultural center.
The hotel includes a Social Hub with Italian restaurant, a fully equipped gym, a modern meeting room and philarmonic halls and zenith concert venues, and over 131 rooms, which gives a brilliant opportunity to explore Paris.
TRIBE Montpellier Gare Sud de France, France: This hotel is based further from the city centre, but is easy to reach via the Montpellier Sud de France train station. With 120 rooms, and a TRIBE restaurant, the hotel also includes a rooftop bar and swimming pool.
TRIBE Reims Centre, France: This hotel is one of the many TRIBE Redesigns and will be located right in the heart of the Champagne capital of France, Reims. With 92 guest rooms, the hotel will also feature a restaurant, meeting rooms and provide a rooftop terrace boasting beautiful views of the Reims Cathedral.
TRIBE Den Haag Centraal, Netherland: With a late 2025 opening, this is the only design hotel in featuring business oriented meeting rooms along with 159 guest rooms focused on leisure.
From the hotel’s rooftop bar, guests will enjoy breathtaking views of The Spui Square.
TRIBE Ljubljana, Slovenia: This hotel is expected to open in 2027 and will be the first hotel of the brand in Slovenia. It will be design driven, integrating the vibrancy of the city. The hotel will be centrally located and will have particular design features inspired by the city’s rich culture and history.
TRIBE Porto Gaia, Portugal: Scheduled for 2027, this hotel will serve as a stylish and functional TRIBE brand hotel in the dynamic Porto city, merging modern design and local cultural influences. The hotel will be located in a great area for exploring Porto’s rich history and wine culture.
TRIBE Rostock, Germany: Scheduled to open in 2028, the hotel will infuse new life into Germany’s Baltic coast. The property will have 157 rooms, a rooftop bar, and extensive meeting spaces, including an 115 m² auditorium which will elegantly host both business and leisure events.
Sustainability and Community Focus
Eco-friendly operations is at the core of the brand, and as part of its sustainability strategy many TRIBE hotels in Europe are pursuing BREEAM certification, reflecting the brand’s dedication to sustainability.
While sustaining ecological and environmental efforts in the hospitality industry, the hotel still guarantees that guests can relish on a cozy and a stylish stay.
What is TRIBE USPs for European Visitors
TRIBE Hotels is making business travel easier with their smart, design-forward hotel offering that includes a TRIBE branded restaurant. Each hotel includes high-speed internet and self-service kiosks, making it more efficient for business guests, and has flexible workstations. Every TRIBE hotel has a Social Hub, a shared space that combines work, leisure, and social activities in an engaging atmosphere. Guests can have a walk in the dynamic settings and relish healthy meals inspired from the local cuisine at TRIBE Table.
The United States has temporarily restricted its government personnel from visiting upscale hotels in Karachi, Pakistan, following a reported threat targeting these establishments. The move was confirmed in a security alert issued Friday by the US State Department.
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